3 Investment Instruments For Short-Term InvestorsTunmise Olaoluwa
Before I start to state assets you can invest in for the short term.
I would like you to note that before investing in any asset you need to ask yourself this 3 questions.
1. Is the ROI realistic?
2. Is it sustainable?
3. How long have the assets been in existence?
Don’t rush after an investment that pays 15%,20%,30% per month or annum, without asking yourself the above questions.
3 Assets you can invest in for short term returns (Short term here means within a year)
1. Commercial Papers:
It is an asset issued by big organization/ companies or big banks in form of promissory note that pays a fixed rate of interest. It maturity period is within 270 days i.e. Almost 6 month. It is issued at face value. I will shade more light on this in another post.
2. Treasury Bill:
It is also a short-term instrument/asset that matures within a year, it is mostly issued by the government. It maturity periods are 90 days, 180 days, 270 days and 360 days.
3. Certificate of Deposit:
This is a short-term instrument, it related to saving account but in this case, you don’t have access to your deposit until the agreed fixed date of maturity that attracts a fixed rate of income. It also matures within a year.
Note: These assets have little or no risk in them. There are many other assets but these are the top on the list.
Visit your bank or any bank close to you and make further inquiries to help you get started.
Investing is not an option for anyone who can’t bear the risk.