Short-Term Investments

7 Best Short-Term Investments in 2021

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Before knowing the meaning of short-term investment, it is better if we know what investment is.

Investment or investment is a term related to the accumulation of a form of an asset with the hope of gaining future or future profits.

High-risk brands cannot be separated from the investment world. There is even the term “high risk, high return” which seems to emphasize that to get a big profit.

You have to take the same risks. In fact, most of these investments carry very little impairment risk.

According to Economic Theory, investment is the purchase or production of capital goods that are not consumed but are used for future production or production goods.

There are two types of investment, namely long-term investment, and short-term investment.

In this discussion, we first explain short-term investment.

Definition of Short-Term Investments

long term investments examples

A short-term investment is an investment with a period of approximately one year.

Some examples of short-term investments include deposits, money market funds, and retail bond savings.

Short-term investments are investments that can be immediately cashed out or funded from excess funds temporarily held by a company that is intended to be held for twelve years or less.

Also Read: 7 Best Long-Term Investments

Short Term Investment Benefits

The first advantage of short-term investing is the flexibility it gets from withdrawing funds from investors.

In addition, another advantage is that investors can get profits in a short time.

Therefore, this investment is suitable for those of you who don’t want to wait long to get a return on your investment.

However, you still have to pay attention to the right way to invest in the short term, don’t make the wrong move. As for the disadvantages of short-term investment.

Need to find the right time and place to trade. This is one of the drawbacks of short-term investing. As for the types of short-term investments that are often used.

Top 7 Short-Term Investment Examples

short term investments stocks

Savings Bank Account

A savings bank is a type of short-term investment that is very simple and easy to cash, but easy to withdraw, savings offer low or small returns.

More of these savings do not keep up with inflation. Savings cannot be used to save money over a long period of time.

Certificate of Deposit

Certificates of deposit are often used for short-term investments. When you invest money in certificates of deposit, you agree not to take or withdraw within a certain period of time with a profit or a higher one.

The term of the certificate of deposit is 3 months to a maximum of 5 years. Often these certificates of deposit are insured for investment, they are safe short-term investments and the payouts make sense.

Mutual Funds

There are 2 types of mutual funds that are suitable for use as short-term investment instruments.

The first is money market mutual funds, funds raised for investment in money market instruments, such as money market securities, Bank Indonesia certificates, certificates of deposit, and so on.

For money market funds, this has also been discussed quite completely in this blog. So, go ahead and check.

The second is fixed income mutual funds, which are raised to be 80% invested in debt or resignation-based securities, which are part of the instrument market instrument.

You must already know that there are actually 4 types of mutual funds that are usually offered by investment managers.

Two have been above, the other two are equity funds and mixed mutual funds.

The last two types of mutual funds are less suitable for short-term investments because both involve stocks as an investment instrument with a certain proportion.

And, as you know, the stock price in the stock market which is very volatile is sure to make you suffer from heart disease which requires a quick fix.

Yes, yes, the opportunities for a quick fix do exist, but the risks are high too. If the JCI is red – like at the time this article was written then we can cry.

You have to wait for it to stabilize again if you want to use the money.

Also Read: Want to be Rich When Young, Here are Investment Tips for Millennials

Notes and Short-term Government Retail Bonds

These short-term investments provide flexible tenor from one month to one year.

Short-term debt securities are designed for short-term savings and provide very low returns, while bonds provide more flexibility but are not necessarily secure.

Even if the investment tool has a long term, investors can choose to hold it for a certain period of time or sell it on the secondary market to get capital gains.

Peer-To-Peer Loans

It is also hoped that this investment tool will generate great interest in the short term. In fact, many loans are only due for a few months. Regardless of their difference, the returns given are high.

In fact, not many people are giving profits of up to 20% every year. However, there is one thing to remember. Peer-to-peer lending is a high-risk investment.

Therefore, before using it, make sure you do your research thoroughly.


For short-term investments, there is a Giro as a banking product that offers low interest in the range of 3 to 4 percent which is usually used by companies to facilitate payments.

The savings-investment facility is a banking service with a higher interest rate than current accounts and can be withdrawn at any time.

Investment through time deposits has a higher interest rate when compared to savings.

However, as long as it is stored within a certain time limit. If the disbursement is before the specified time limit, a fine or penalty will be imposed. Meanwhile, the investment facility uses money market mutual funds.

This is done to invest in the money market such as deposits, SBIs, and short-term bonds.

However, the rate of return of money market funds is higher than current accounts but lower than deposits.

However, money market funds can be cashed in at any time.


Cryptocurrency is very volatile and dangerous if you don’t understand it. Cryptocurrency can be used as a short-term and long-term investment.

Long-term investments of cryptocurrencies are Bitcoin, Ethereum, to be precise the TOP 10 cryptocurrencies that you can see on CoinMarketCap.

Make sure to play a little before playing a lot as it is very volatile.

Also Read: This type of Short-term Investments and long-term Benefit

Thus the article about short-term investing, I hope this article can be useful for you.

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