What is short term and long term investments?

Question

What is short term and long term investments?

Answer 1

Birendra,

Short term and long term investment has lots of meaning.

In the sense of stock, short term investment mean stock trading. That is, buying a stock today and selling the same by today itslef or tomorrow. Long term investment mean, learning well about a stock through good study and research and buying the same to hold very long period to get the good possible returns from the same.

In mutual funds, short term investing mean, suppose you have bulk amount and you required the same to collect little more interest than bank. You required this money after three months and not able to put in FD for long term. to meet such situation, you will add the money tho short term liquid fund for 3 months or Fixed Maturity plans for 3 months. Both giving you capital protection as well as return than bank FD. Long term investment mean, buying a mutual fund in a systematic way using SIP, and keep investing for long term to get potential profit from the investment.

does this make sense?

Answer 2

Long term investments are for more thn a year period.

Short term is less than few weeks, 4 or less.

Rest is medium term investemnts

Answer 3

short term investment is meant for duration of up to one year period.

Answer 4

Short Term Investments are usually those held for less than one year.These are in the nature of parked funds awaiting final destination which are long term investments.

Answer 5

All these terms are relative.

Short term can range from 1 week to 2 months.  3 - 6 months investments are also treated as short term for positional trades.

1 year and above is treated as long term.

Answer 6

Very simple even simpler than your question...

Short term inestments are the investments made for short period and mostlt it is less than one year:  Suppose you buy shares and sell them within one year - will be an example of short term and suppose if you sell these after five or six year it will be termed as long term investment.  To feed the kids now for your old age help is also a long term investment.

Answer 7

Short term is like 1 year or less. Long term is longer than that.

Answer 8

Short term investments is holding a security from a one month period to six months,

Long term investing is holding securities longer than 6 months.

A trader is different than an investor, a trader will hold a positon from 5 seconds to 3 months.

Short term investments are based on the anticipation of the market making a move within a short period of time, while the long term investor is taking on a position with plans of that position appreciating in longer period of time.  Mutual funds are typically long term investments, while options or lower priced stocks are short term investments

Answer 9

There is also a matter of the risk assumed.  Short term investments, those funds you might need in a year or less, should be kept in relatively safe investments -- money market accounts/funds, CDs, and maybe treasury notes or short term bond funds.  For the long term you can generally can afford to assume more risk because you will have the potential to recover from any losses you might incur.  Stocks, bonds, and mutual funds are examples of long term investments.

Answer 10

Short term investments are usually more risky as compared to long termers...

STI are good if u wanna make profit on a small scale everyday... its like filling the bucket mug by mug.

In case of LTI, the returns are even slower if compared periodwise...its like filling the bucket one drop at a time...

but the adv. is that the risk factor is less as compared to STI...

u should read this article on long term investment to get a clear picture...

its called  Get rich. Do NOTHING!

http://wealth.moneycontrol.com/authorart...

that will make things clearer!!