Investments and financial planning usually involve long tenures, but there are many investors out there, who are looking for short-term stock investment. The reason for short term stock investments, may be the investment goal is in the near future or the investor may not want to lock in their money for long tenures. Any investment which falls under the investment horizon of 7 days to 12 months can be qualified as short-term stock investments.
Short term investments have various instruments ranging from 7 days to 12 months. An investor can choose any of these instruments depending upon the investment amount, investment horizon and investment goal. There can be various instruments, the most common being the fixed income products which further include instruments like post office term deposits, company deposits, fixed deposits (FD) etc.
Another category for short term investments includes market linked products. These are basically dept mutual fund schemes which includes underlying securities with an average duration of less than 12 months. Money Market Funds, Liquid funds and Ultra Short Duration funds are the most common market linked short term investments.
Short term Stock Investment with Quartile M:
The option of short-term stock investments with Quartile M comes with the highest risk to reward ratio, which means that the risk incurred, and the returns are the highest in this case. The reason being the extremely volatile nature of the financial markets. The investment horizon ranges from few minutes in case of intraday to years. Quartile M is a product from CapitalVia investment advisor, which offers weekly holding to make the most out of the short-term swings.
The liquidity depends on the stocks in which the investment is made. The income earned is taxable under the income tax act and incurs securities transaction tax (STT).
Who should choose short term stock investment?
Short term stock investments are suitable for those having investment goals in the near future or for those who do not want to block capital for longer terms. One should choose an appropriate investment option depending on the investment goal, horizon and capital.
Having a thorough analysis of your financial stats is important before planning any investment. A certified investment advisor can help you in analyzing your financial well-being and suggesting you’re the most preferred mode of investment based on the same. Short term stock investments do incur risk and therefore it is recommended to have your risk profile evaluated before planning any investment. The investment advisor will help you with your risk profiling as well. It is necessary to have an updated risk profile before planning stepping out in the market for short term stock investments.