Winning Bizness Sports Desk

Mumbai. Whenever it comes to investment, people always think about the time for which they need to park their money. In the world of investment, this has been categorized in 3 time periods: short term, mid term and long term investment. The basic difference between these three is duration but most of the people remain confused as to which one they can get more benefit from investing in. If you also want to know the same, then first you have to understand the difference between these three. Whenever you choose a scheme to invest, you should keep in mind your financial goal. Seeing that, you should decide on whom you should invest.

What is short-term investment ?

These are generally low-risk financial goals in which investors get comparatively less returns. These are the goals which you want to achieve in a few months or a period of 1 to 2 years or 3 years. Like buying a new phone, traveling, paying off a loan or starting an emergency fund and to find these, you have to make a budget of your income and expenses. Then a part of your money will have to be deposited in a safe and such investment scheme from where you can easily withdraw, if needed.

What is mid-term investment ?

These investment periods are the financial goals where you want to achieve your financial goals in one to five years. This includes buying a car, education loan, buying a house or starting a new business, etc. When you invest in such a scheme, you may also have to face market fluctuations and changes in returns. Many times you get very good returns in these. To obtain your goals, you have to budget your income and expenses and invest a part of your money in a safe and high return scheme. For this, you can choose mutual funds, FD or any other reliable option.

What is long-term investment ?

Long term investments are more beneficial for those who do financial planning for more than 5 years. This includes financial goals like buying a house, saving for retirement, studying abroad or paying off huge loans. These investments are usually high risk. Generally you get good returns in these. To reach these, you have to analyze your income and expenses. After this, you have to invest a part of your income every month in a growth oriented and long lasting manner. For this, you can choose investment options like stocks, bonds or provident funds.