Short-term investments or temporary investments are those that have a period of time of months or a maximum of one year, since as their name indicates, these transactions are usually simple and fast. One of the features that represent this type of investment is being made with money in cash, in order to earn extra money when you need to make current and even emergency operations.
To make a short-term investment, it should be considered that it is easy to negotiate at an already established price, given these conditions, temporary investments must have these two characteristics: negotiation and availability are promissory notes.
To invest in the short term it is necessary to know the market in which you plan to get involved, since it is preferable to invest in those common and easily mastered financial products that are in accordance with the investor's profile, since if you are not a risky person, it is best to Do not invest in the stock market but in bank deposits or national treasury bills.
It should be noted that to make this type of investment, borrowing is a lot of risk and can end in ruin. Diversifying is a great option, for example, not investing everything in the same side, it can be a bit in the Stock Market or short-term investment funds and buying treasury bills, since the idea is not to have all the money in just one investment.
