Investment Option: Which one is best among short, mid and long term investment, which one will give more returns?
Even though there are many options available for investment at present, we try to select the option which gives higher returns. We invest only to fulfill our financial goals.
For example, if we plan to build a house in 4 years, then we will look for an investment option in which we will get higher returns after 4 years.
According to the tenure of investment, we have three options (short-term, mid-term, and long-term investment). Many people get confused about these three options as to which one to select.
If you are also thinking of investing, then it is very important for you to first understand the difference between these three. After understanding their differences, you will be able to easily understand which option is best for you.
Short term investment
If you want to meet your financial goals with less risk then short-term investment is a very good option. However, it gives much lower returns compared to other options. If you want to invest for a period of 1 or 2 years then you can select this.
For example, this option is very good for buying a mobile, traveling abroad making loan payments, and preparing an emergency fund.
To invest in this, you will have to make a budget of income and expenses. After this, you can deposit part of your savings in the right scheme from where you can easily withdraw whenever the time arises.
Mid-term investment
If you want to achieve any financial goal in five years, then you can invest in Mid Term Investment. However, there is a risk in this. In such a situation, to avoid risk, you will have to keep an eye on market fluctuations and changes in returns.
You can invest in Mutual Fund, FD, or any other scheme to fulfill your financial goals.
For example, if you want to buy a car or start a new business, then you can select this investment option. You can invest in this option without any risk.
Let us tell you that whenever you select a scheme, you must read the terms and conditions along with the returns. One should never be in a hurry while investing.
Long term investment
If you invest for more than 5 years, then you can choose the option of Long Term Investment. This option will prove to be very beneficial for you.
If you want to invest in children's education, buy a house, to continue the income after retirement, then you should make a long term investment. Generally, it gives very good returns.
In this, if you want, you can invest with risk or you can also invest in a risk-free scheme.
To invest in this, you will have to analyze your income and expenses. You will be investing in it for a long time, hence you should invest only after considering all the situations and according to your financial situation. You can select many options for long-term investment like stocks, bonds, or provident funds (PPF).
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