Investments are divided into two, namely short-term and long-term investments.
However, if you want to multiply the benefits of the money you have in a short time then short-term investment is the most appropriate choice. In addition to minimal risk of loss, short-term investments are also easier to learn than long-term investments. That is the reason why this investment is in demand by novice investors.
One example of a popular short-term investment is mutual funds. Of course, OCBC NISP’s friends have heard of it, right? Yup, even though it is relatively safe, investors still need to know special tips and tricks so that their short-term investments are able to generate maximum cash.
Well, if you are interested or planning to get into this type of investment world, then the following information certainly doesn’t want to be missed. There is a complete description of the various types of short-term investments, investment tips, and some of the benefits. Check it out!
Definition of short term investment
Short-term investment is an investment product that deposits a certain amount of funds to be managed in a short period of time, so that funds and profits can be disbursed in a short period of time. Usually this investment period lasts for one year.
Funds invested are generally managed in things that are easily traded or liquidated. Therefore, this type of investment has a lower risk than long-term investments, but still produces a profit that is no less large than other investments.
Short term investment goals
The objectives of short-term investment are:
Intended for novice investors to gain investment experience.
Can increase cash flow or income in a short period of time.
For business owners to increase business capital in a short time.
Get additional funds from money invested in a short period.
As a form of passive income.
Types of short-term investments
There are various types of short-term investments that are profitable and can be chosen according to the investor’s goals, including:
Deposit
The first example of short-term investment is deposits. Deposits are savings products in banks by depositing and withdrawing a certain amount of funds in a short period of time. Deposit period ranging from 1 month, 3 months, 6 months, 12 months, up to 2 years.
Even though the time is short, funds can only be withdrawn on the maturity date. So it cannot be withdrawn at any time. The level of deposit security is guaranteed because it is supervised by the Deposit Insurance Corporation (LPS) with a deposit guarantee of up to Rp 2 billion.
Interest rates on deposit products are quite high. So this investment product becomes a profitable investment choice.
Mutual Funds
Mutual funds are investment products in which funds from investors will be managed by investment managers in order to make a profit. So that investors do not need to think about strategies and how to manage them.
There are many types of mutual fund investments, both long and short term. Short-term mutual funds are liquid and practical. Usually this type of money market mutual fund is a short-term investment choice because the period is only one year and the risk level is low.
Government bonds (SUN)
The next which is an example of a short-term investment is government bonds or SUN. SUN is a statement of debt issued by the state for fund investors. This investment product is quite profitable and safe, because the state guarantees the payment of capital and interest within a certain period of time.
So the level of risk is very small. Deposited capital does not have to be a lot. You can start investing starting from IDR 1 million.
The way government bonds work is that the state issues letters to investors. Investors as receivables invest a number of funds in the state so that these funds are managed by the state for development and state needs.
Profits from capital management will be paid by the state to investors in the form of interest. Several other products of government bonds are sukuk and bonds.
Fintech Peer to Peer (P2P) Lending
Fintech Peer to Peer (P2P) Lending is a new investment product where investors invest their funds in Indonesian MSMEs to develop their businesses. The profit from the results of fund management is in the form of an interest rate of a certain amount.
The investment period is freely chosen by the investor. Starting from 6 months, 1 year, to 2 years. So the refund is faster.
The capital required to invest is quite small. Starting from IDR 100 thousand, you can already invest.
Although the profit will be given every month but the level of risk is quite high. Because the funds are managed for MSMEs which have the potential to fail or lose. But this type of investment is still safe because it has been registered with the OJK.
Share
Who doesn’t know stocks? This investment is quite popular since long ago. Shares are securities as proof of ownership of an asset. Although famous for long-term investments, there are types of stocks with short periods.
Short term stocks using a trading system. Profits from trading can be obtained in just a few hours. But you are required to be an expert and be able to manage with a strategy to make a profit. The risk of the stock is also high but it is worth the large profits.
Profitable short term investment tips
Whatever type of short-term investment you choose, the goal is to get the maximum profit with minimal risk. So, so that profits are multiplied, let’s look at the following short-term investing tips.
Determining investment goals
Before investing, you must first set goals. Do not carelessly invest because of the trend. Having a clear investment goal will make it easy for you to determine investment instruments and investment strategies.
Knowing the performance of investment instruments
After knowing the purpose of investing, the next step is to know the investment products on the market. You must understand in detail the investment instrument to be chosen. Starting from information on how to manage funds, risk of loss, legality of investment products, profit systems, and the like.
Do not get a loss due to not understanding the investment product. Thorough and observant in determining investment instruments to avoid fraudulent investments. Be a smart investor so that your profits will be multiplied!
Choose the right investment
There are many investment products on the market. Don’t make the wrong choice. You should know in advance your needs and financial conditions before investing. Choose investment products according to your needs and goals.
Invest with strategy
Investment is not just depositing funds. But you must be armed with knowledge related to investment. In order to get the maximum profit, you must implement an investment strategy.
Please discuss with the experts to determine a profitable investment strategy.
Short term investment benefits
Short-term investments are chosen because there are many advantages, including:
Fast refunds and profit making.
As passive income
Can be an additional cash flow
Meet certain needs in the short term, for example the cost of education.
Profitable savings products that can be enjoyed quickly.
This investment has a small level of risk.
As a place to learn and seek investment experience for novice investors.
The capital required is not too large. Starting from Rp. 100 thousand, you can invest in short term.