Short term investments
When we think about investment, we often think about saving for long term goals like retirement. But there are also plenty of short term investment options that could help you to reach your goals.
What are short term investments?
Short-term investments are investments with a time horizon of 3 years or less.
So, they're great for people who know they need access to their money in the near future.
Short term investors usually have a specific goal in mind.
They know what they want to use their investment for, and they know that they'll need to have their money available soon.
Why should you invest your money, and not simply save it?
It's common for people with short term goals to use their bank's savings accounts to save their cash. This is an effective way to keep your money tucked away, but it doesn't necessarily grow your wealth.
When you invest your money in short-term investments, you have the potential for higher returns than with a savings account.
What are the differences between short-term and long-term investments?
The main difference between short-term and long-term investments is how much risk the investor is willing to take.
When you're investing for a long-term goal, you might be willing to take on more risk. This is because investing for longer periods of time could give your investment a chance to recover from any potential declines in value.
But with short-term investments, your primary goal is not to lose money. This makes most short-term investors opt for low-risk short-term investments.
Our online Digital-Adviser will help you open a low-risk Voluntary Plan
The Alexforbes Invest Voluntary Plan allows you to invest directly in our uniquely engineered unit trust funds. And if you're looking for efficient short-term investments, our Voluntary Plans offer excellent short-term investment options.
You can tailor-make your investment to meet your specific goals. And our trusty online Digital-Adviser will help you every step of the way.
Simply download the Alexforbes Invest app and answer a few quick, easy questions about your goals. From there, the system will take into account your time horizon and appetite for risk before suggesting the Voluntary Plan that'll best suit your needs.
Try it now, with no obligation to invest.
Alexforbes funds for short term investments
Our online Digital-Adviser will suggest an appropriate fund for your short-term investments. Generally, if your time horizon is less than three years, the suggested fund will either be the Granate SCI Money Market Fund or the CoreSolutions Cautious Fund.
The Granate SCI Money Market Fund
Perfect for low-risk short term investments (time horizon up to a year)
Our Money Market Fund aims to give short-term investors access to a diversified portfolio of money market instruments. The fund is ideal for low-risk short-term investments because it's specifically designed to have minimum fluctuations.
Because protecting your money is our main priority, we ensure that there is very little volatility in the fund. To achieve this, our Money Market Funds are short-term cash investments, and there are no growth assets in the fund.
The Granate SCI Money Market Fund is ideal for short-term investors looking to invest for up to a year.
The CoreSolutions Cautious Fund
Some degree of risk involved (time horizon of 1-3 years)
Our Cautious Fund is another one of our short-term investment options. Your money will mostly be invested in bonds (loans to governments). There will also be some investment in shares, with shares in companies traded on a stock exchange, both in South Africa and globally.
Reach your short-term goals faster with Crowdvest
With Alexforbes, you don't have to tackle your short-term investments alone. You can share your short-term investment opportunities with your family and friends.
By starting a Crowdvest investment, you give your loved ones the opportunity to contribute towards your Voluntary Plan.
Investing money towards your shared goal will help you reach your outcome faster.
Our skilled financial advisers are always just a phone call away. So if you have any questions about your short-term and long-term investments, please don't hesitate to ask.
Our team is ready to explore your investment possibilities with you and provide personalised guidance to align with your financial goals.