Best Way to Invest Money: Short Term Investments

Looking for the best way to invest money short term?

Here we give you some short term investments which you can go for, so as to earn some quick money. 

With the kind of financial situation we are facing today, it's difficult to precisely say the kind of investments which would give a high return. The amount you want to invest and the time period for which you are investing depends on your short-term or long-term goals. Moreover, there are several high risk investment options which can be the best way to invest money short term, but then that would depend on how much risk you are wiling to take. If you are not for taking high risks, there are other options too which can be good short-term investments. Usually when you say short term, the period ranges from a few months to a couple of years, but it all depends on you how long you want to keep your money in the market. The best way to invest money safely includes keeping it in savings account, which will not only allow you to withdraw money when you need it, but can also earn interest on it. Getting high returns on short-term investments is not difficult.

Best Short Term Investments

When you think of return on investment, you should think in the long run, but if you need short-term gains, then there are several options available. Some of them are:

Mutual Funds and Stocks

Mutual funds and stock investing has the capacity to give you excellent return in the short run. Traditionally stocks have given a high rate of return, but then it can be highly risky. One day, you may find the prices of stocks rising high, and the very next, they fall. Most of the top-notch companies issue stocks and shares, so you can go for them. Then there are penny stocks which you can also go for. Each of these shares cost less than a dollar, and you need to trade them within a day. You may not get huge returns, but small gains over a period of time.

Commodities

You can also opt to buy commodities like gold and silver, whose prices are usually on the rise. This is the smartest way to invest money as they give good returns not only in the long run, but in the short term as well. Gold investment can be said to be a safe bet as gold prices remain stable even when the prices of other things go down.

Forex Trade

Trading in foreign currencies is one of those options which you can use for short-term investments high return. The forex trade market is such that you buy foreign currencies when their value depreciates, and sell them when the price increases. This is a high risk option, but can be the best way to invest money short term.

Easy Investment Options

If you don't want to take all the risks associated with investing in stocks, mutual funds, commodities and forex trading, then you can opt for short-term high-grade municipal bonds, money market accounts, government savings bond and certificate of deposits. Let's take a look at each of these in detail.

High-grade Municipal Bonds

This is one of the safest and best short-term investments which you can go for. These are issued by the state government or at times by the local government, and their value usually does not depreciate. The government requires money for several projects which it may be carrying out, so it issues such bonds. So the chances of you making loss by such investments are less. Moreover, you get tax benefits by investing in this option, but before buying, make sure that you buy only from reputed agencies.