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Published by on Tuesday, January 12, 2010 at 1:41:00 PM

Short Term Investments Vs. Long Term Investments

Short Term Investments Vs. Long Term InvestmentsAs we all know that there are tow major types of investments in Stock trading which are known as short-term investments and long term investments. Many of us get confused in choosing which type would be the best one, we can see the differences between these two types and can consider the advantages and disadvantages of each which will definetely helps us in taking the right decisions for our investments.

The most major difference between shor term and long term investments is the fact that short term plans are designed to show a substantial yield in a shor time of period. And the long term investment, is designed to last for few years and present a slow and progressive increase in its yield.

We can also see more differences say the advantages and disadvantages of short term and long term investments.

First let us take alook at Short-Term Investments

The major advantages of investing in a short term investment plan is that they are potentials for growth in a very fast and short period of time, say from a few weeks to a few months. There is fluctating trends which could affect the market, short term loans will also allow you more control over our money and it is more likely that we can keep a watch eye on our investments.

But these types of investments are a bit risky because of its fluctuations category in such a volatile stock market, we can compare to its long term counterpart, it may much easily affect by unpredictable circumstances because of its shorter period of time and evern if there is a huge chance that we can make a lot of earnings in this type of investment, and also tehre is great chances that we can loose a lot here.

now let us take a look in Long-Term Investments

In long term investments on other hand we can see a greater ability to gain very small and distributed profits which also takes longer time period. And because of its slow but steady pace, it is very much stable and we can get fewer risks.

Here we can find a disadvantage for the slow growth of our investments and it may indicate that we cannot expect to earn profits right now if we badly need money also we cannot get it. We can also have very less control over our money and we have to wait for the maturation period.

We can also make a note because investments may require a lot of charges to be paid as it profresses and due to fluctuations in the market, many of the investments may experience down time before climbing up for production.

We can choose between these two major investments by just rembering the most improtant thing first consider in order to guage which plan would become and gives benefits to us and which one is contemplate on our reasons in investing.

If we like to earn money fast for this goal to earn fast money then I can suggest you to go for a short term plan which will definetely suits you. But on the other hand, if we like to invest for future and insurance purposes then the second one the lont term investment plan will work better.

Before taking decisions always remember that there are advantages and disadvantages in all types of investments. An ultimately, If we like to be succesful in our endeavor, then we must be willing to take on minimum risks and always make smart decisions and then we will be the best in our trades. Keep Growing....
Published by IzajAhmed Shaikh.
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I am, Mr. IzajAhmed Shaikh, a Computer Professional and a Pro. Blogger, who belongs to Shahabad, Karnataka India. My basic Qualifications are B.Sc., and M.C.M. done from University of Pune., formerly known as, Poona University,. I like to write articles based on my personal experiences.