Short Term Investment

A Short-Term Investment Fund (STIF) is a type of investment fund which invests in money market investments of high quality and low risk. They are commonly used by investors to temporarily store funds while arranging for their transfer to another investment vehicle that will provide higher returns. This type of fund aims to protect capital while generating a return that compares favourably with a particular benchmark, such as a Treasury Bill index. These types of fund have low management fees (usually well beneath 1% p.a.) and relatively low rates of return, commensurate with their low-risk investment style.

Short term investments are important to both the consumer and the financial industry, giving both of them the option of using the money and seeing a nice return quickly. Without some of the investments made for the shorter terms, many wouldn’t even consider investing their money in the first place. Many times, investments made for the shorter terms can help with day to day issues that most people are faced with. With these types of monetary investments, returns can be seen within a year or two, allowing families and individuals prepare for a foreseen future event, such as vacation, retirement or graduation. Many smart investors use short term investments in order to get more money to invest in a larger, more predominate investment. There are a few Stock Tips though that the are recommending given the state of the economy and the need to still make some money off investment.

One of the most popular short term investments that people use is putting their money in a checking or savings account. Although most of these investments don’t have a huge pay off rate, they are used by just about anyone that has a steady income or money at hand. These investment strategies don’t require much money to start and can be withdrawn without any penalties. The best short term investments for 2011-2012 are the same short term investments that financial advisors always push as best. Some of the investments for 2011-2012 will be a bit surprising and a bit of a throw back to the past.  ofcourse the tried and true short term investments will make the best short term investments for 2011-2012. Things like short term debt bonds. Certificates of Deposits are also considered a best short term investment for 2011-2012 for the faint of heart that like to invest in something that is really low risk.