SHORT OR LONG TERM INVESTMENT

SHORT-TERM INVESTMENT:

                    Short-term investment are instruments that are traded for a short period of time. short period up to 3 years

                    These are high liquidity instruments, involving lesser market risks

                    There are types of financial instrument in short-term investments...

INVESTMENT	PERIODS
Treasury bills	91 days
Ultra-short-term funds	2-6 months
Low duration debt funds	6-12 months
Money market funds	Up to 1 year
Bank fixed deposits	Range 14 days to 10 years
Company fixed deposits	More than 1year
Post office deposits	1-5 years
Recurring deposits	<6 months
Sweep in fixed deposits	Around 12 months
Large cap mutual funds	1-3 years

 

LONG-TERM INVESTMENT:

            Long-term investments are expecting higher returns after several years.     

           There are 5 years or more, these investments allows you to invest in aggressive market instruments. The investment options are

STOCKS

• Stocks are the physical representation of a part of a company's value. A company's offer INITIAL PUBLIC OFFERING(IPO) to investors to raise funds for business.
• If you invest in the stock market& hold a stock in long term you can expect 16% of return, you can first of all understand the market movements.
• Analysis the previous and current year balance sheet of the company moreover dividends pay out percentage check out year by year. 
• If you want to invest in stocks and securities, remember to choose a trusted financial partner, who can provide free to open an ONLINE DEMAT ACCOUNT AND A TRADING ACCOUNT.  

WHICH IS BETTER SHORT OR LONG TERM INVESTMENTS:

        Both forms of investment have their own pros and cons.

        Short-term investment allows you to achieve your financial goal within a short span of time with a lower time.

        On the other hand want to high returns you can choose a long term.