How to start my investment with a small amount of AED 5000 a month. I want to target the short-term investment options which provide me a good return.

Short-term investments are any assets that are projected to perish or to be honored within the progression of one to 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. However, before planning to invest for the short term we need to realize if there is any high interest bearing loan outstanding in your records like credit card outstanding or personal loan as the returns on investment might be less as compare to borrowing costs, therefore it’s advisable to settle the debt before venturing into investment strategies.

Certainly, there are diversified investment opportunities for the short-term returns. You could ideally look to combine multiple options as stated to mitigate the risk and achieve the target goal.

Savings or Recurring Accounts

These accounts are the lowest lucrative type of short-term investments. Savings accounts are the unpretentious, liquid types of short-term investments, but in return, it is effortlessly manageable and offers small profits. However, with the recurring account, you can deposit equated amount every month for a specified period to achieve the goal line. But these accounts do not even retain up with inflation, so they must not be used to stockpile cash over an extended period.

Certificates of Deposit (CD)

CDs are one of the conjoint kinds of short-term investment, where you invest the money and decide not to take it away for a definite interval of time or in return for a higher yield. Moreover, CDs range choices from as little as three months to as long as five years. CDs are federally indemnified, so they are one of the innocuous types of short-term investments; yet, they still offer a rational profit.

Money Market Funds

These are usually liquid like savings accounts, but they offer a superior yield. The hitch of maximum money market funds is that they are not federally protected, unlike other types of short-term investments. This makes money market assets a higher-risk vehicle for short-term savings.

National Bond or Sukuk

Bonds are securities whereas Sukuk adheres to Islamic background avoiding Riba. Moreover, Bonds represents a debt obligation, whereas Sukuk indicates ownership, as an asset. These provide flexible short-term investment terms for minimum four weeks to as long as want to continue.

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

Along with our short investment tips, do connect with 4C Mortgage Consultancy certified consultant, and let them help you to plan your investment in Dubai. 4C Mortgage Consultants provide best mortgage consultancy for a resale property, new purchase property, mortgage refinance, off plan purchase, construction mortgage, project finance, commercial mortgage, buyout, equity release, Non-UAE Resident mortgage in Dubai. Follow us on Twitter, Facebook, and LinkedIn and keep yourself updated with more home buying tips.