Investing does not depend on the premise of putting your money somewhere for a long time so that you can make huge profits. There are many short-term investment options available that can guarantee you good returns. The challenge lies in identifying a suitable option that has minimal risks and maximum benefits. The choice of an investment option is usually determined by the liquidity situation, liquidity and a person's willingness to take risks. The following are some of the short term investments that are worth considering when investing in the short term.

Money Market Accounts
These refer to a type of savings account offered by credit unions and banks. The characteristic feature of these accounts is that they pay a higher interest rate based on current market interest rates and also require a higher minimum balance, mostly above $ 1,000. Failure to maintain the minimum required balance on the account may result in some fees. These accounts can allow one to write up to three checks in a month. Withdrawals to third parties are limited to six transactions, with various restrictions, mostly high fees if one person makes more withdrawals than necessary.

Microloan programs make it easy to make small loans to people who do not have the financial backing or guarantee to acquire loans from banks and other credit institutions that require collateral. Investors generally turn over their funds to special lenders who have management and loan experience. These lenders also offer technical assistance to borrowers. Investors receive interest that banks and other lending institutions would have enjoyed. Microloans have a maximum term of 6 years and attract an interest rate of around 8 to 13 percent. Microloans can be a great short-term investment idea.

Invest in options
The options are investments or derivatives. Its total value is determined by the value of the underlying investment. Most of the options are secured by shares. However, indices and commodities can also be used as underlying securities. Stock options give the investor the right to buy or sell shares at a specified price. They usually have a set expiration date. Investing in options requires having adequate knowledge of the financial markets in order to predict the movement of stocks, as well as the right time to buy or sell.

Exchange traded funds (ETFs)
These are stocks that are traded on the stock exchanges around the clock in the form of funds. These funds can contain assets such as bonds, stocks, and commodities. ETFs generate a return on their index. They are considered inexpensive and therefore cheaper to invest in. ETFs can be bought and sold on the same day, making it a convenient short-term investment strategy.

Fixed Maturity Plans (FMP) and Monthly Income Plans (MIP)
They are instruments that invest in fixed deposits and bonds that have a similar maturity term. FMPs contain a fixed maturity period. On the other hand, MIPs are flexible in the sense that they do not have a fixed maturity period. An investor is free to withdraw the investment at any time after paying an exit charge, with a charge of 0.5 to 1 percent. These are some of the effective short-term investment options for more information click here

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Short-term investment options