uccess in life is defined differently person to person. We all strive for different goals, and many of us are willing to work hard to get something in return. Particularly with things like finances. Investing, and investing early, means you have decades for your money to accumulate and it can lead to some huge returns. Invest an asset you have now (such as money), and get the chance to reap some extensive benefits!

Short-term investments 

If you’re worried about taking too many big risks at first when it comes to your investing strategies, consider starting off with short term investments. You only make short term investments for up to three years, and you will always be able to get your money wherever you need it. Even though short term investments are a lot less risky than those that are more long term, the downside to short term investments is that you won’t have as much time to maximize on the amount you get back in returns. 

Corporate bond funds 

Corporate bond funds can be an excellent way to hone in on short term investments when they are short term. Corporate bonds are issued by companies to fund their investments, and when the funds are short term, they last no more than five years. The bond funds are a collection of corporate bonds from a variety of different companies, which means that the overall return won't be affected as much even if the bonds don’t perform very well. 

Here is a list of the top short term bond funds in the United States currently:

Cash management accounts 

A cash management account can be used alongside your debit or credit card, or even just on its own. A cash management account can be used to invest in your savings. Cash management accounts also earn higher interest, and your savings can be funneled to multiple banks in the program. This will then allow you to have FDIC insurance on all of your funds beyond the usual $250,000 amount limit. Cash management accounts are often confused and intertwined with savings accounts, but you can only actually earn interest with the cash management accounts. 

While there are many benefits of opening a cash management account, there are many factors you should consider before opening one:

  • Minimum balance: Many cash management accounts require you to keep a minimum amount at all times.
  • Online exclusive: Cash management accounts are typically offered just by banking institutions that exist online. 

Wealthfront and SoFi Money are some platforms where you can go today and set up your cash management account. 

Wealthfront app
Image courtesy of Wealthfront, where you can maximize on your returns and minimize your taxes today.

Bank certificates 

Bank certificates offer you an interest rate if you lock your money away for a certain period of time. Because bank certificates are short term, you only need to commit to a time frame of at least three months to five years. The potential interest rate you will receive with a bank certificate is two percent. Open a bank certificate today and get a fixed return, a wide variety of account options, and more flexible terms. 

Long term investments 

While short term investments may be most appropriate for those who are looking to get money back in a shorter period of time, long term investments may be ideal for you. Overall, you will have a longer period of time to learn and understand risks and make the most amount of money. 

Unit linked insurance plans

While stock markets are becoming more and more volatile, unit linked insurance plans (Ulips) are another popular long term investment option. Ulips specialize in debt markets and equities, so the investment horizon is very wide. 

Why should I invest in a ULIP?:

  • Investment and insurance: ULIPs offer life coverage, which also provides an insurance benefit to all family members of whoever is insured. 
  • Triple E-E-E benefit: This indicates that a policyholder can claim tax rebate during investment, returns, and withdrawal.
  • ULIPs invest money in different asset classes, so higher amounts in returns are more likely. 

Another reason many young people choose to invest in ULIPs is because you are not completely locked down to a certain period of time. During the lockdown period, (typically three to five years), you are allowed partial withdrawals through ULIPs. In case of an emergency, you are allowed to take out some money without having to worry about any other rigorous fees. 

Public Provident Fund  

Public provident funds allow you to mobilize savings in the form of an investment along with a return. If you’re looking for a low risk option, want to save your taxes, and get the chance to earn an amount in returns, open a public provident fund (PPF) account today.

  • Deposits: You are only required to make a payment deposit once every year under a PPF.
  • Safety: PPFs promise to provide you with complete safety, risk-free returns, along with full capital protection
  • Withdrawal costs: Because a PPF is a long term investment option, you will be charged for withdrawing too early up to 50% of total funds. The majority of PPFs last at least fifteen years, but you are eligible for a partial withdrawal after six years. 


Stocks are one of the most well known and simple types of long term investments. When you invest money into a particular company or organization, you technically own a “share” and exist as a shareholder. If a company’s stock stands out to you, it may be in your best interest to invest and buy shares within the company. Before you make the decision to invest in the stock market, consider researching the company/industry and weighing the growth opportunities. Once you begin to make the investments, you’ll need to monitor their performance over time.

Companies that are great to invest in our current day in age include Amazon, Alphabet Inc, and the TransDigm Group Inc. 

Alphabet Inc.
Alphabet Inc. is the parent company of Google along with some other subsidiaries. With the digital advertising market growing rapidly, Alphabet is in the top three of all cloud services providers which makes the stock a buy. Image source of google.

Time to invest

Just remember that the earlier you begin investing, the more time you have to learn/grow and ultimately make the most amount of money. If you’re apprehensive at first, consider starting off with short term investments. Once you make progress with those and learn more about the best investment principles, you can look at some long term investment options as well. Happy Investing!

Aug 19, 2022