The need for capital is realized the most when businesses are looking for opportunities to grow. Some companies go for bank loans while others just do short term investments that will earn them sufficient money for their venture. Here are a few short term investment strategies that could help a business that is in need of quick capital.
Investment Properties
Properties that you purchase with the idea of getting financial returns are known as investment properties. Generally, investment properties are not used for housing purposes. You can produce rental income from your own home by offering spare rooms for rent, but this is tricky and finding trustworthy tenants is not easy. Purchasing a separate investment property and using this to get rent is generally a better alternative.
Money Market
The money market is an impressive short term choice to invest in. It brings better interest rates than saving accounts. The interest grows within a short period, thereby offering benefits for investors.
Penny Stocks
Penny stock is a familiar stock in the US – it can trade from a fraction of a penny to five dollars. Although it is something riskier, the returns are sizeable when you invest in this. Penny stocks are potent enough to turn a tiny investment into a huge fortune.
Investing in Gold and Mutual Fund
Investing in Gold and Mutual Fund are also smart investing choices. Gold is something that is always in huge demand – it can bring great returns for your short term investment. Mutual fund is another smart choice for your short term investment. The rate of profit is based on fluctuation in rates during investing, the term of investment and selling rate.
Even though you have plenty of short-term investment choices to pick from, they also bring some risk along with the high possibility of returns. Businesses should check with proper research to go for an investment that brings in the lowest level of risk.