Sucessful short Term Investments

What is best investment?

According to the present economy best investment is the similar factor  to the global financial situation. It is subjected to certain risk tolerance so it is not considered as the best investment for everyone.

Pay Your Debts

Most of the people have the doubt on what is the best investment where the experts say investing money is not a best way and you need to pay back your debt with five percent interest rate. Here you are just paying the debt and saving it on the interest rate.

Dividend Stocks

enterprise investment scheme

Dividend stocks are considered as the best way to invest your money, at present trading market is trading under the historic P/E ratio average where the dividend stocks are sought after the CD investors and bonds. As the interest rate is very poor the investor accepts the risk.
Real Estate

Most of the people plan to secure their money by investing it in a real estate where it receives only the quarterly statement.

Stocks

Stock market is also considered as a better place to invest your money.

Enterprise investment scheme

Government has announced the new tax free venture capital plan to motivate the equity finance for small start-up company called as SEIS (seed enterprise investment scheme)

Tax Relief

For the taxpayer who invests the capital up to £100,000 is qualified to start a new company who can avail the income tax relief up to    fifty percent on his investment. Along with income tax benefits, they have the opportunity to gain two capital gain tax reliefs.

Capital gain which is reinvested is eligible for SEIS where they can completely exempt from the CGT provided and they can place through the tax period or year between 2012 and 2013. It has ability to combine the tax relief till 78%.

They can dispose the SEIS shares with the exception from the CGT where the share has the possibility to retain it for minimum three years.

Main Conditions

Company directors can invest under the SEIS but not more than thirty percent of shares during the qualifying time period.
To get qualified under the SEIS, company must follow the main condition

  • Must have employees less than twenty five
  • Their gross assets must be lower than £200,000
  • Must carry genuine and new trade
  • Must be in traded less than two years.

Best short term investment

Savings account

This type of account is safe for investment with less risk and more liquidity where the minimum amount of investment differs from one bank to another.

Money market

It is otherwise called as liquid funds. It is considered as best short term investment as it is prioritizes by protecting the capital account along with increase in return. Common examples for this account are commercial papers and certificate of deposit.

Gold investment

Investing in the yellow metal is the smarter option where the price level increases day by day, where the gold never fades.

Fixed maturity plan

Usually these types of funds are close ended where it has a main advantage of distributing the dividends.

Fixed deposits

This type of investment option has various tenures offered by both private and public sector banks. It is considered to be unbeatable in terms of security and liquidity.

Commodities/ Derivatives/Equities

It has high risk rate where it is said to be good option for the investor who is ready to face the risk. On the other side derivatives and the commodities are gaining great popularity with good investment avenue.

 

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