Safe Short Term Investments

Short term and safe are two very immiscible adjectives for an investment that is meant to make good and quick returns (money). The short term investment usually lasts from 12 months to 15 months and as a rule of thumb, the more you invest the more are the returns and the more risk you take the greater are the returns bound to be. There are very few investment options for the short term and you will have to start being innovative with your money, not reckless, to earn a good, constant and substantial rate of returns. Before you invest in any channel, make it a point to consult your investment advisers, to ascertain its success.

When you invest, you are not Aladdin wielding a magic lamp of investment returns, hence making the best investment does not mean that you sit back and relax, well, relax a little bit. You will get several plans, policies, private placement programs, securities and God knows how many different attractive investment opportunities. In such a case, it is extremely important that you ask yourself and the proposer, 4 very important questions, 'how? When? What? and Where?'. Take a piece of paper and write down some important details about the investment:

Number 1: How much will you have to invest (also include the ridiculous fees and commission in them).

Number 2: How much will you get back? Is it worth it? No, crumple the piece of paper and throw it away. If it's worth it, then proceed to the following steps.

Number 3: How much will you have to pay per month and per year? Will you be able to cough it every year? Do you feel it is wise to invest the amount every month?

Number 4: What is the rate of return? Is it substantial or is it just a token of appreciation?

Number 5: Keep on calculating and keep on saving up, and look for a mature maturity (returns). This will get you the best returns in the short term.

Safe Short Term Investments Options

There are a considerable number of investments that are termed to be short term investments due to their operations, for exactly one year. However, there are also some investments that you can use to short term returns.

United States: T-Bill
One of the first examples of short term investments that I would like to recommend is the T-Bill, that is the United States Treasury which is issued by the U.S. Treasury for a time period of 3 to 12 months. On an average, you may have to invest about $10,000 and much lesser in cases where the bill is issued at a discount and then stay put, and enjoy the returns by the time of maturity. A bill of about $9,000 will earn you about $600 by the end of 10 to 12 months.

Other Government Securities
The United States government needs some or the other capital, and the government often prefers to issue securities. T-Bill, commercial paper, promissory notes and bonds by the government are excellent choices, due to the fact that the return payment is quite good and assured. You may check up with Fannie Mae, Freddie Mac and Sallie Mae for such bills and bonds.

There are two significant advantages of investing in the government securities, namely, the returns are very good (though not extremely substantial) and secondly the initial issue is on the basis of a substantial discount. These investments mature in a time spanning from 3 months to 15 months, which makes them really good short term investments.

Collective Investment Schemes
Any nation's stock and money market is considered to be a great channel to introduce your money into a specified capital. A short term investment fund is basically a pool of investments which is professionally managed by a some experts in the field. The problem right here that you may have to face is that the rate of return is partially guaranteed and the remaining one depends upon the index and performance of the CIS. There are some really good CISs that you can avail, finalizing your decision on the basis of the rating of the custodian company. A CIS is one of the best short term investment.

Private Placement Programs
Business undertakings and companies and corporations always need funding in the form of shares, securities and debentures that are quite easily sourced with the help of private placement program. The private placement program principally is an investment into the securities of a business establishment. The three potential advantages of investing in the private placement programs are, one, many of the securities which are purchased are tied down to some asset, two, the business establishment pays handsome dividend and interest to all security holders and three, one can also liquidate the securities into the securities or money market. Private placements will offer you some really good short term investment options as they at times have very high sale and market value.

Cash Back Plans
This entire channel is not a safe short term investments plan but it can be used as a short term investment plan. This plan which is like an insurance plan involves the payment of premium to the financial institute or bank for a certain number of years. The institution 'grows' these funds and then starts repaying them in the form of a structured settlement that spans over several years. Now there are some plans that start the repayment after about 2 to 3 years.

Mutual Funds
Most mutual funds are subject to market risks and have a partial assured rate of return, while the remaining part does not have an assured rate of return. In cases of bad economic conditions, you might end up losing a rate of return. It basically means that you will get back all your money that you have invested at an assured rate of return, however, in case of bad economic conditions, you will have a problem of not having a huge return on investment.

For longer investment plans, you can have a look at best investments for 2011, and capitalize on the opportunity as the economy is the revival phase from the recession. The best short term investments don't come knocking on the door. You have to calculate and apply the logic for it.