I want to target short-term investment options, which provide a good return, and are stable. What are my options?

Short-term investments are any assets that are projected to perish or to be honoured within the progression of one-three years. The objective of this form of asset is to safeguard principal with low-risk investments. However, with low risk, the yield on short-term funds is quite abridged.

Before investing for the short term you need to realise if there is any high-interest-bearing loan outstanding in your records, like credit card or personal loan, the returns on investment might be less compared to borrowing costs. It’s advisable to settle the debt before venturing into investment strategies.

There are a few diversified investment opportunities for short-term returns. You could look to combine multiple options to mitigate risk and achieve the target goal.

Savings or recurring accounts are the lowest lucrative type of short-term investments. It is effortlessly manageable and offers small profits. However, with the recurring account, you can deposit an equated amount every month for a specified period to achieve the goal. They must not be used to stockpile cash over an extended period.

Certificates of deposit are a short-term investment option where you invest money for a definite interval of time or in return for a higher yield. The time period could be from three months to as long as five years.

Money market funds are usually liquid-like savings accounts, but they offer a superior yield. The hitch is that they are not federally protected, making them a higher-risk vehicle for short-term savings.

National Bonds or Sukuk Bonds are securities providing flexible short-term investment terms for minimum four weeks.

Understand the wide range of investment solutions as per your disposable income ratio, and invest the money to work with the right yield.