Short-term investment Vs long-term investment.

 

If you want to grow your wealth, then investment is one of the best options for you. It helps you to meet your financial needs and secure your future and helps you to fulfill your goals. You can invest somewhere based on your goals and requirements. It can be a short-term and long-term investment. In the short-term investment, generally, you hold an asset or invest for one year or less and you have short-term needs. In the long-term investment, you hold an asset for more than a year or even hold it for several years and you usually, have long-term planning or a 20 to 30-year plan with that investment.

Your use of the investment distinguishes short-term and long-term investments. For example, if you invest in stocks, you have both options in this investment and now you will have to decide whether will you go for a long-term or short-term investment based on your purpose and goals with this investment.

Long-term investment.

This investment is basically for at least a year or maybe for 20 years. In this investment, your goals might be building wealth for your kids’ education, buying a house, your retirement plan, etc. For example, if you buy a plot in the Nova City Peshawar intending to build a house there when you get retired or sell it after 5 to 10 years for any purpose.

Why should you choose long-term investment?

This sort of investment will be better for you if you are planning for your future and want to invest to use it after 20 o 30 years. This investment gives you high returns and you will have multiple options for this kind of investment. Further, if you want to secure your wealth from inflation then this investment is the best option for you. Not only will it secure your wealth but over time, it will be multifold. Otherwise, inflation might erode your wealth if you do not use it. You can buy a residential or commercial plot in Nova City Phase 1 for this sort of investment because, in the future, there are possibilities of a far better reward than other options. Risk-factor also goes down if you do long-term investment.

Short-term investment.

When you invest for a short period like a year or maybe less then this will be considered a short-term investment. So, if you have short-term plans like want to save some wealth for a wedding, improving your house, or planning for vacations then your short-term investment is a good option for you.

Why should you choose the short-term investment?

If you need money soon to meet your expenditures, then you should go for the short-term investment. For example, you are saving for a down payment of a property or wedding. Further, if you need a constant source of income then you should choose it as it generates wealth frequently because of its liquidity, and in case of an emergency, you will be able to deduct your investment quickly. Further, a short-term investment provides you with an opportunity to analyze the market and modify your investment accordingly.

Although, both the investment options have pros and cons. The thing that matters is your objective. Based on your goals and aims, you can choose which option is preferable for you.

Record Marketing has taken up this opportunity to guide and provide you with the finest information about Nova City Housing Society Peshawar in a bid to ameliorate the standard of living in our country.