Disadvantages Because this is only short term investors must have professional knowledge and spend a lot of time to monitor the value of investment instruments. This is done to find the right time and place to trade. This indian email address list is one of the weaknesses of short-term investing. Additionally taxes and inflation can reduce the return on this investment. Types and Examples of Short-Term Investments There are several types of short-term investments, but what we provide below are several types of short-term investments that are often used, including Bank Savings Accounts.
Bank savings are a type of short-term investment that is very simple and easy to withdraw, but the ease of withdrawing savings offers with low or small results. More of these savings accounts do not keep up with inflation so savings cannot be used to save money for long periods of time. Certificate of Deposit A certificate of deposit is a frequently used short-term investment.