High-Yield Savings Accounts
High-yield savings accounts are one of the most common forms of short-term investment. Nowadays, many banks offer such accounts with a higher APY (Annual Percentage Yield) and a much better rate of return than the local brick-and-mortar bank.
Basically, it is a savings account at an online bank, and offers the facility of transferring money to and from the person's checking account. However, opening this account is not an easy task, as the banks offer this facility only to certain valued customers.
The investor should meet any one of the following criteria, in order to open such an account:
- He should make a sufficiently large initial deposit.
- He should limit his transactions.
- He should maintain a high average balance.
In the past, some of these stocks have shown an enormous rise from 25 cents to USD 20, and on the other hand, there have also been cases when these stocks have become worthless. They represent all the small companies across the US, and are gaining popularity because of the comparatively smaller initial investment.
They are powerful enough to turn a small amount into a big fortune. An example being Tim Sykes who has made millions from an initial capital of just USD 12,000. Trends provide an efficient way to find profitable stocks.
They are basically a repeating pattern of the market, which occurs consistently over the history of the stock. On close observation, an investor can see smaller patterns that occur at consistent intervals, which can be used as guidelines to forecast future movement.
Low-Risk Stock Funds
Low-risk stock funds are also a profitable option for the short term. The ideal way to look out for them is to measure their volatility, by the standard deviation of their monthly returns, over a period of time. These funds also provide the benefit to buy a 'n' number of units, for a diversified portfolio.
Before opting for a low-risk stock fund, the investor should get a thorough idea of factors such as the risk involved, profits, and tax-efficiency. It should be kept in mind that generally, these types of funds are of high volatility and low tax-efficiency.
Disclaimer: This piece of information is for reference purposes only and does not directly recommend any specific investment choices.