Investing Guide

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Different Investment Plans

Different Investment Plans

Knowing your investment objectives is extremely important Depending on your short or long term objectives, you will need to identify your target before considering to invest your money and how much to invest.

An investment greatly depends upon the duration of the investment plan. It basically depends upon your financial needs. If you believe you may need to have access to your investment at any given time, you shouldn't take any risks and should always opt for investments which don't require your funds to freeze for any fixed or long duration of times. Liquid investments are the key in this instance. The market experts suggest that if you have any other investment options that can be stated as liquid investment and you have certain amount of extra funds you can surely opt for the longer term investments. This way you will be ready to face the difficult financial situation which may arise at any time and also you will have your extra funds secured for great benefits. Longer term investments leave your doors open to more choices. Although longer investments sometimes involve slightly higher risk, the rewards are significantly higher than those of short-term investments.

Let's take a look at various investment lengths and what they can actually mean to you.

Short term Investments

Professional investors and fund managers will generally classify a short-term investment as one which lasts 3 years or less. These usually include a saving account, a money market fund or any other type of investment which offers you some sort of guarantee on your investment's time frame. Although you don't really benefit from high payouts, the main advantage of this type of investment is security of your funds.

Medium term:

Usually lasting between 3 to 8 years, a medium-term investment still contains minimized risk over the period of time of your investment, while the rewards are slightly higher than those mentioned in the previous point. With a good diversification of your funds and well thought-out placement of your investment in commodities, you can get a healthy return on your investment.

Long term:

Usually going beyond 8 years, long-term investments make time your best friend. This allows you to invest in markets which usually contain volatility in the short-term but which are historically the most profitable in the long term, given that they always get back to their original level before finding new peaks.

So, having a fair knowledge of different investment time periods will ultimately lead you to invest in the best frame that suits your needs and demands. Before considering the next investment option, do consider all this in your mind.

DISCLAIMER: The views expressed in this blog are those of the author and may not reflect those of Jindal Bullion Limited. The author has made every effort to ensure accuracy of information provided; however, neither Jindal Bullion Limited nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Jindal Bullion Limited and the author of this article do not accept culpability for losses and/or damages arising from the use of this publication.