SOME SHORT-TERM INVESTMENTS TIPS.

 

Short-term investments are aimed at maximizing profits. As a rule, they are very risky. By their fraction of risk, they even look like speculation in foreign exchange markets. But using the right control methods you can greatly improve your result. Here are some tips on what you can pay attention to.

 



1.You must  focus on reducing risk, and simplify. Given such time period, it is prudent to reduce the level of risk in an investment plan or portfolio. A business cycle usually lasts more than three years 1, so there typically isn’t enough time to recover from a loss that may occur if choosing higher risk assets such as equities Financial Planner & Money Multiplier.

2. Do not ignore consider short-term instruments. Cash is a desirable asset for managing risk and liquidity, and is certainly appropriate for very short horizons. Within the fixed income universe, securities with less than three years to maturity, such as short-term bond funds for example,may be a good consideration.

3. Synchronize goal timing with your assetsIf your specific horizon is known (e.g., three months, 12 months, or three years), invest in products that generally match your investment horizon. Consider these examples:If you’re saving for a down payment on a house that’s due in six months, look for products with a six-month duration.If you have a down payment on a purchased item due in six months, with the remainder of the purchase price to be paid in twelve months, then look for products with varying durations of six to twelve months.

4. Do not listen to anyone! Do not pay attention to reviews. Especially at the initial stage of choosing a niche for investment. Analyze all available information. Make your own conclusion. Then pay attention to what others say.

Based on information from https://www.quora.com

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