Best Short Term and Long Term Investment Plans

To improve your financial strength, you need to devise efficient long term investment as well as short term investment plans for more immediate needs. Mutual fund schemes are a good option as you can choose them according to your appetite for risk and the returns you desire. Apart from mutual funds investment, we also look at other good long and short term investment plans in this article.

To start, you need to find a good balance between growth and safety. If you wish to keep your capital secure, it may not yield good returns and you may even lose money because of inflation. For growth, the risk may be needed, but you can do your homework and select efficient long term investment plans that overcome risks and help to grow your funds.

Long Term Investment Schemes

These include long-term bonds, stocks, ETFs, mutual fund schemes, annuities, tax-sheltered retirement plans, and real estate. Short term investment plans are more about preserving capital, while the aim of long term investment is to create wealth. You should choose suitable long term schemes that provide you income later in your life so you can be adequately prepared for retirement. Therefore, you need to create the needed amount of money to live comfortably in the later stages of your life.

Long term investment entails some risks so you can achieve higher gains. This includes investment types like real estate and stocks that have the potential to deliver capital growth. Therefore, your long term portfolio should be mainly in real estate, stocks, and mutual funds as they can give you double-digit returns and can significantly boost your wealth.

Do not worry if your long term investment schemes face temporary setbacks such as fall in stock value. You are in it for the long haul and therefore give them time to recover. An investment could go down up to 20% in the next few years but could recover handsomely to triple in amount value over the long term. So ignore short-term lows by keeping the big picture in mind.

Seek the advice of an experienced financial advisor for your long term investment plans to be on the safe side.

Short Term Investment Plans

You may want to save money for a vacation, to buy a gadget, or any other short term goal. For this, you can place your money in good short term investment plans that you can liquidate anytime you want and also obtain handsome returns. Focus on schemes with low risk, but with the potential to deliver sizeable income.

Effective plans include bank fixed deposits, recurring deposits, corporate fixed deposits, liquid mutual funds, and savings accounts with a high amount of interest. Most of these instruments are safe so you can rest assured that your capital will be secure.

Mutual Fund Schemes

The advantage of mutual funds investment is that risk-averse investors can opt to avoid stocks and place their money in debt funds that are safer. They can give you higher returns compared to bank fixed deposits while being equally secure. Therefore, they are ideal for short term investment. You can invest in solid-liquid mutual funds that deliver low-risk returns over the medium to short term. The best part is you can easily withdraw the money if required without fretting about exit load.

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