7 Types of Profitable Short-Term Investments. Many people are reluctant to invest because they are lazy to wait for long-term and long-term results. But did you know that now there are profitable short-term investments?
If you want to get a large amount of additional income and quickly, short-term investment is the solution. Short-term investments are investments with maturities of less than or equal to 1 year. Short-term investment is a form of investment that you can take advantage of in only a period of 12 months. Therefore, many people agree that short-term investments are the most profitable for those who want to get additional funds and finance their needs in the near future. There are various types of short-term investments that you can choose to try.
Curious? Here are the most profitable types of short-term investments for those of you who want additional income. Examples of the Most Profitable Short-Term Investments Currently, there are dozens of types of investments that you can try as a way to get extra income. No need to be confused in deciding which short-term investment is right for you.
Here we have summarized 7 examples of the most profitable short-term investments. Money Market Mutual Funds (RDPU) The first type of short-term investment is money market mutual funds. Mutual funds are capital investments that are skyrocketing in today's society. Mutual fund investment is very easy and cheap to do, even for people who have no knowledge in the investment world. Mutual funds are investment platforms where investors only need to submit capital funds to then be managed as a securities portfolio by a third party called an "investment manager".
The capital required to start investing in mutual funds is not much, usually only starting from IDR 100,000. This form of investment consists of several types, one of which is money market mutual funds. Money market mutual funds are a form of short-term investment for less than one year. Money market mutual funds invest all of their capital in money market instruments such as time deposits, bonds and Bank Indonesia Certificates (SBI). This type of investment is also known to be the safest to do because it has the lowest level of risk. Short-Term Debt Securities/Bonds/Sukuk The next form of short-term investment is debt securities or short-term bonds. Short-term debt securities become a flexible investment medium within a period of 1 to 12 months. However, compared to money market mutual funds, short-term debt securities investments provide relatively low returns or profits. Apart from bonds, another popular short-term investment instrument is sukuk. Sukuk are part of Government Bonds (SUN), so are Indonesian Retail Bonds (ORI).
The difference is that sukuk are classified as investments in debt securities or Islamic bonds. Sukuk usually last in the long category (2-3 years). However, there are also sukuk with a short tenor of around six months. Time Deposits Investments in time deposits are carried out in the same way as regular savings in a bank. The difference is, in the time deposit system, you are not allowed to withdraw money before the end of the saving period. So, when you choose to make a deposit investment, you lose the freedom to withdraw money whenever you want. But in exchange, you get a much higher interest on savings than when you save normally. The interest rate on deposit profits varies, depending on the respective bank. There are banks that provide interest rates of 5%, 6% and even 7.25%. The period of saving time deposits lasts for a specified time, but all of them are short-term durations such as 3, 6 and 12 months.
When you want to open a savings deposit, there will be things that need to be agreed between the customer and the bank in advance, such as the minimum nominal savings and the selected duration. Another important note regarding deposits is that the amount of money deposited will affect the interest rate on customer profits. The bigger your deposit, the more profit you will get. Stocks Stocks are the most popular investment instruments. Everyone around the world must know, or at least, have heard of the word stock. Stocks are loved by many people because they have an easy, flexible system and have a large profit return. Stock investing is also easier thanks to the presence of online trading applications.
Unlike time deposits, stock investments provide more flexibility. As an investor, you can buy shares to resell in the next few days. Therefore, stocks can be used as short-term or long-term investments, depending on the respective investment targets. But as a stock investor, you still have to be careful. Learn the best ways to sell and buy stocks, because this investment carries a fairly large risk of loss. Peer to Peer Lending (P2P) The next short-term investment is Peer to Peer Lending or P2P for short. This form of investment is still relatively new, therefore it is natural that it is not as well-known as the types of investments described previously. P2P investing moves online, and even though it's relatively new, Peer to Peer Lending can provide you with significant benefits.
In Peer to Peer Lending investment, you invest in various international lending institutions. As a result of your investment, you will get a profit of 8-12% per annum and in Euros. Peer to Peer Lending Investments gives you the opportunity to invest in any borrower's needs. Another advantage of P2P investing is that you can start with a minimum of 10 Euros. The risk that you can encounter in P2P investing is the change in currency exchange rates during the international transaction process. Property Rental Property investment can also be used as a profitable short-term investment alternative. Property investment also still exists in society today because humans need buildings to live in or run a business. If you own building assets, you can invest by renting out the property. The property rental system per month is considered fast in providing returns to investors. Examples of investment in the form of rental properties such as rental of shop houses, boarding houses, villas and apartments. Retail Savings Bond (SBR) The last investment is Retail Savings Bond (SBR). This short-term investment lasts for two years, but you can withdraw money early with the Early Redemption feature. Retail Savings Bonds are in the form of government bonds. As an SBR investor, you act as a lender of loan funds like a Peer to Peer Lending investment system.
The loan funds are intended for the state government to pay debts, and later, you will be given a profit in the form of a percentage of interest added to the capital you spend. Retail Savings Bond investment is in demand by people because it has minimal risk. The small risk is due to the direct security guarantee from the government. Another advantage, you can start investing with a capital of IDR 100,000 and get 6.3% interest for one year. Interesting right? Those are 7 examples of short-term investments that you can choose to be a source of additional income. Hopefully this article is useful. [business-about]