raaman
Valued Contributor
Investments – short term or long term?
When a person decides to invest his hard earned money to earn some extra income by way of interest, one of the first and foremost questions he or she has to think and consider about is whether they want to invest for a short-term or long-term investment.
And it is that, although the purpose of both types of investment goes the same way and does not make much difference, short-term investments are not the same as long-term investments. At various times of the investment period, an investor may feel frustrated and dejected with the performance of the investments made by them.
This is more likely to happen when, for example, you expect growth for the investment, and you don't get it as expected, or you strongly believe that the value of your investment won't fluctuate much, but it does fluctuate and makes you sad and stressed.
However, some of this frustration could be easily lessened if you become more familiar with the nature of investment schemes available with the financial institutions and banks for the public. In particular, it is important to observe and note the difference between long-term and short-term investments. What defines long-term and short-term investments?
Long-term investments are those options that are intended to be held for a period of more than one year. In fact, these long-term investment options generally last for several years. On the other hand, short-term investments are those that are only made for a year or lesser than a year.
When a person decides to invest his hard earned money to earn some extra income by way of interest, one of the first and foremost questions he or she has to think and consider about is whether they want to invest for a short-term or long-term investment.
And it is that, although the purpose of both types of investment goes the same way and does not make much difference, short-term investments are not the same as long-term investments. At various times of the investment period, an investor may feel frustrated and dejected with the performance of the investments made by them.
This is more likely to happen when, for example, you expect growth for the investment, and you don't get it as expected, or you strongly believe that the value of your investment won't fluctuate much, but it does fluctuate and makes you sad and stressed.
However, some of this frustration could be easily lessened if you become more familiar with the nature of investment schemes available with the financial institutions and banks for the public. In particular, it is important to observe and note the difference between long-term and short-term investments. What defines long-term and short-term investments?
Long-term investments are those options that are intended to be held for a period of more than one year. In fact, these long-term investment options generally last for several years. On the other hand, short-term investments are those that are only made for a year or lesser than a year.
