{"id":13368,"date":"2023-06-14T07:33:00","date_gmt":"2023-06-14T07:33:00","guid":{"rendered":"https:\/\/www.kredx.com\/blog\/?p=13368"},"modified":"2023-10-26T04:35:42","modified_gmt":"2023-10-26T04:35:42","slug":"short-term-investment-options-a-beginners-guide","status":"publish","type":"post","link":"https:\/\/www.kredx.com\/blog\/short-term-investment-options-a-beginners-guide\/","title":{"rendered":"Short-Term Investment Options: A Beginner\u2019s Guide"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"13368\" class=\"elementor elementor-13368\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-6227076 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"6227076\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-c7a4da6\" data-id=\"c7a4da6\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-b5b2142 elementor-widget elementor-widget-text-editor\" data-id=\"b5b2142\" data-element_type=\"widget\" data-settings=\"{&quot;ekit_we_effect_on&quot;:&quot;none&quot;}\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">People invest money to grow their wealth and fulfil their long-cherished financial goals. There are many investment options in India, such as mutual funds, bank deposits and government schemes. People deposit their hard-earned money into these investments according to their risk profile and financial requirements.<\/span><\/p><p><span style=\"font-weight: 400;\">Many investors prefer short-term investments as that helps them make money quickly. <\/span><b>Invoice discounting investment<\/b><span style=\"font-weight: 400;\"> is one such option. This is a beginner&#8217;s guide that would help people learn essential details about it.\u00a0<\/span><\/p><h2><b>Short-Term Investment Options<\/b><\/h2><p><span style=\"font-weight: 400;\">Short-term investments are those that can be liquefied easily within a maximum of 5 years. Most people invest in these options due to their low risks and ability to provide higher returns compared to bank deposits.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Let us take a look at some of these options:\u00a0<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><p><b>Investment in Gold\u00a0<\/b><\/p><\/li><\/ul><p><span style=\"font-weight: 400;\">Investors can consider opting for digital gold investments through ETFs (Exchange Traded Funds) and mutual funds. This is a popular <\/span><a href=\"https:\/\/www.kredx.com\/investment\/invoice-discounting\/short-term-investment\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">short-term investment option<\/span><\/a><span style=\"font-weight: 400;\"> because of gold\u2019s high liquidity.\u00a0<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><p><b>Liquid Funds<\/b><\/p><\/li><\/ul><p><span style=\"font-weight: 400;\">Mutual funds investing in securities with residual maturity of 91 days are called liquid funds. Short-term investors, who want higher returns compared to bank deposits, often consider this option.\u00a0\u00a0<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><p><b>Fixed Maturity Plans\u00a0<\/b><\/p><\/li><\/ul><p><span style=\"font-weight: 400;\">People who wish to opt for an investment tenure of 1 \u2013 5 years can opt for FMP (Fixed Maturity Plans), which <\/span><span style=\"font-weight: 400;\">invests in bonds<\/span><span style=\"font-weight: 400;\"> whose residual maturity is well-aligned with the duration of this close-ended plan.\u00a0<\/span><\/p><h2><b>Benefits of Investing in Invoice Discounting\u00a0<\/b><\/h2><p><span style=\"font-weight: 400;\">Invoice discounting is a short-term credit facility that allows borrowers to get cash against unpaid invoices. KredX, India&#8217;s leading invoice discounting platform, offers investors the opportunity to directly offer credit to businesses and receive returns within two months. If they keep reinvesting the returns from previous investments, they&#8217;ll be able to earn higher returns annually.<\/span><\/p><p><span style=\"font-weight: 400;\">Discussed below are some of the benefits of<\/span> invoice discounting investments<span style=\"font-weight: 400;\">:\u00a0<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><p><b>Safe Investment Option<\/b><\/p><\/li><\/ul><p><span style=\"font-weight: 400;\">This financial instrument does not involve any execution risk because the borrower has already provided a product or service to the seller and raised an invoice against it. The investors can invest in their preferred invoices through the fintech platform.\u00a0<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><p><b>Portfolio Diversification<\/b><\/p><\/li><\/ul><p><span style=\"font-weight: 400;\">Maintaining a well-diversified portfolio is mandatory for successful investments. Invoice discounting is an unconventional investment instrument that promises portfolio diversification and high returns at minimal risk.\u00a0<\/span><\/p><ul><li aria-level=\"1\"><p><b>Reduction of Effect of Market Movement\u00a0<\/b><\/p><\/li><\/ul><p><span style=\"font-weight: 400;\">This <\/span><a href=\"https:\/\/www.kredx.com\/investment\/invoice-discounting\/alternative-investment\" target=\"_blank\" rel=\"noopener\">alternative investment<\/a><span style=\"font-weight: 400;\"> option reduces the effect of extreme market movements on an investor\u2019s portfolio. This feature makes it a beneficial investment instrument with regard to market volatility.\u00a0<\/span><\/p><ul><li aria-level=\"1\"><p><b>Low Risks\u00a0<\/b><\/p><\/li><\/ul><p><span style=\"font-weight: 400;\">KredX conducts a thorough risk analysis for every business borrower at multiple stages to determine their ability to repay the invoice amount. Moreover, its system verifies every invoice before listing them on the <\/span><a href=\"https:\/\/www.kredx.com\/working-capital\/invoice-discounting\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">invoice discounting platform<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p><ul><li aria-level=\"1\"><p><b>High Returns<\/b><\/p><\/li><\/ul><p><span style=\"font-weight: 400;\">Investors can receive annualised returns as high as 15% at relatively low risk. This is a significant benefit, especially when one compares it to the other investment options.\u00a0<\/span><\/p><h2><b>Why Should You Choose KredX for Invoice Discounting Investment?\u00a0<\/b><\/h2><p><span style=\"font-weight: 400;\">With advanced technology at <\/span><span style=\"font-weight: 400;\">KredX,<\/span><span style=\"font-weight: 400;\"> investors are promised a smooth and hassle-free investment experience. Listed below are essential features:<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Fully digital investment experience<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Professionally managed end-to-end investment option\u00a0<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A customised dashboard providing details of the portfolio, current deals and fund management options\u00a0<\/span><\/li><\/ul><p><span style=\"font-weight: 400;\">With the <\/span><a href=\"https:\/\/play.google.com\/store\/apps\/details?id=com.kredxinvest\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">KredX Invest app<\/span><\/a><span style=\"font-weight: 400;\">, investors can now track their investments whenever they wish to and seek support from the customer service team whenever they need it.<\/span><\/p><h2><b>Bottom Line\u00a0<\/b><\/h2><p><span style=\"font-weight: 400;\">The increasing popularity of <\/span><a href=\"https:\/\/www.kredx.com\/Invoice-discounting-investment\" target=\"_blank\" rel=\"noopener\">invoice discounting investment<\/a><span style=\"font-weight: 400;\"> is due to its ease of investing. Fintech service providers have come up with various alternative investment options which require less documentation and offer higher returns than traditional financial instruments at lower risks.\u00a0<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-155b556 elementor-widget elementor-widget-heading\" data-id=\"155b556\" data-element_type=\"widget\" data-settings=\"{&quot;ekit_we_effect_on&quot;:&quot;none&quot;}\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-medium\">FAQ's<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-cae8ec3 elementor-widget elementor-widget-elementskit-accordion\" data-id=\"cae8ec3\" data-element_type=\"widget\" data-settings=\"{&quot;ekit_we_effect_on&quot;:&quot;none&quot;}\" data-widget_type=\"elementskit-accordion.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<div class=\"ekit-wid-con\" >\n        <div class=\"elementskit-accordion floating-style\" id=\"accordion-69f1441a03338\">\n\n            \n                <div class=\"elementskit-card active\">\n                    <div class=\"elementskit-card-header\" id=\"primaryHeading-0-cae8ec3\">\n                        <a href=\"#collapse-c5ddfeb69f1441a03338\" class=\"ekit-accordion--toggler elementskit-btn-link collapsed\" data-ekit-toggle=\"collapse\" data-target=\"#Collapse-c5ddfeb69f1441a03338\" aria-expanded=\"true\" aria-controls=\"Collapse-c5ddfeb69f1441a03338\">\n                            \n                            <span class=\"ekit-accordion-title\">How to invest in invoice discounting?<\/span>\n\n                            \n                                <div class=\"ekit_accordion_icon_group\">\n                                    <div class=\"ekit_accordion_normal_icon\">\n                                        <!-- Normal Icon -->\n                                        <i aria-hidden=\"true\" class=\"icon-open icon-right xts-icon xts-chevron-down\"><\/i>                                    <\/div>\n\n                                    <div class=\"ekit_accordion_active_icon\">\n                                        <!-- Active Icon -->\n                                        <i aria-hidden=\"true\" class=\"icon-closed icon-right xts-icon xts-chevron-up\"><\/i>                                    <\/div>\n\n                                <\/div>\n\n                            \n                                                    <\/a>\n                    <\/div>\n\n                    <div id=\"Collapse-c5ddfeb69f1441a03338\" class=\" show collapse\" aria-labelledby=\"primaryHeading-0-cae8ec3\" data-parent=\"#accordion-69f1441a03338\">\n\n                        <div class=\"elementskit-card-body ekit-accordion--content\">\n                            <div>Register yourself with us on our website as an investor, and we will help you park your investments in this unique asset class with varying maturity periods at an attractive risk-adjusted rate.\u00a0<a href=\"https:\/\/www.kredx.com\/blog\/invoice-discounting-investment-what-is-it-and-how-to-invest\/\" target=\"_blank\" rel=\"noopener\">Know More<\/a><\/div>                        <\/div>\n\n                    <\/div>\n\n                <\/div><!-- .elementskit-card END -->\n\n                \n                <div class=\"elementskit-card \">\n                    <div class=\"elementskit-card-header\" id=\"primaryHeading-1-cae8ec3\">\n                        <a href=\"#collapse-7a2b94e69f1441a03338\" class=\"ekit-accordion--toggler elementskit-btn-link collapsed\" data-ekit-toggle=\"collapse\" data-target=\"#Collapse-7a2b94e69f1441a03338\" aria-expanded=\"false\" aria-controls=\"Collapse-7a2b94e69f1441a03338\">\n                            \n                            <span class=\"ekit-accordion-title\">What is a short term investment?<\/span>\n\n                            \n                                <div class=\"ekit_accordion_icon_group\">\n                                    <div class=\"ekit_accordion_normal_icon\">\n                                        <!-- Normal Icon -->\n                                        <i aria-hidden=\"true\" class=\"icon-open icon-right xts-icon xts-chevron-down\"><\/i>                                    <\/div>\n\n                                    <div class=\"ekit_accordion_active_icon\">\n                                        <!-- Active Icon -->\n                                        <i aria-hidden=\"true\" class=\"icon-closed icon-right xts-icon xts-chevron-up\"><\/i>                                    <\/div>\n\n                                <\/div>\n\n                            \n                                                    <\/a>\n                    <\/div>\n\n                    <div id=\"Collapse-7a2b94e69f1441a03338\" class=\" collapse\" aria-labelledby=\"primaryHeading-1-cae8ec3\" data-parent=\"#accordion-69f1441a03338\">\n\n                        <div class=\"elementskit-card-body ekit-accordion--content\">\n                            <div>Short-term investments are investments that you can liquefy easily within five years. Most investors prefer these due to their low risks and ability to provide higher returns than bank deposits. KredX, India's leading invoice discounting platform, offers investors the opportunity to invest in multiple short-term deals and receive their returns within two months. If they keep reinvesting the returns from previous investments, they'll be able to earn higher returns annually. <a href=\"https:\/\/www.kredx.com\/investment\/invoice-discounting\/short-term-investment\" target=\"_blank\" rel=\"noopener\">Know More<\/a><\/div>                        <\/div>\n\n                    <\/div>\n\n                <\/div><!-- .elementskit-card END -->\n\n                \n                <div class=\"elementskit-card \">\n                    <div class=\"elementskit-card-header\" id=\"primaryHeading-2-cae8ec3\">\n                        <a href=\"#collapse-52382bd69f1441a03338\" class=\"ekit-accordion--toggler elementskit-btn-link collapsed\" data-ekit-toggle=\"collapse\" data-target=\"#Collapse-52382bd69f1441a03338\" aria-expanded=\"false\" aria-controls=\"Collapse-52382bd69f1441a03338\">\n                            \n                            <span class=\"ekit-accordion-title\">How to calculate return on investment?<\/span>\n\n                            \n                                <div class=\"ekit_accordion_icon_group\">\n                                    <div class=\"ekit_accordion_normal_icon\">\n                                        <!-- Normal Icon -->\n                                        <i aria-hidden=\"true\" class=\"icon-open icon-right xts-icon xts-chevron-down\"><\/i>                                    <\/div>\n\n                                    <div class=\"ekit_accordion_active_icon\">\n                                        <!-- Active Icon -->\n                                        <i aria-hidden=\"true\" class=\"icon-closed icon-right xts-icon xts-chevron-up\"><\/i>                                    <\/div>\n\n                                <\/div>\n\n                            \n                                                    <\/a>\n                    <\/div>\n\n                    <div id=\"Collapse-52382bd69f1441a03338\" class=\" collapse\" aria-labelledby=\"primaryHeading-2-cae8ec3\" data-parent=\"#accordion-69f1441a03338\">\n\n                        <div class=\"elementskit-card-body ekit-accordion--content\">\n                            <div>You can calculate your net income divided by the total cost of the investment or the Return On Investment by using the following formula: Cost of Investment - Current Value of Investment divided by the Cost of Investment<\/div>                        <\/div>\n\n                    <\/div>\n\n                <\/div><!-- .elementskit-card END -->\n\n                \n                <div class=\"elementskit-card \">\n                    <div class=\"elementskit-card-header\" id=\"primaryHeading-3-cae8ec3\">\n                        <a href=\"#collapse-9ab8e1769f1441a03338\" class=\"ekit-accordion--toggler elementskit-btn-link collapsed\" data-ekit-toggle=\"collapse\" data-target=\"#Collapse-9ab8e1769f1441a03338\" aria-expanded=\"false\" aria-controls=\"Collapse-9ab8e1769f1441a03338\">\n                            \n                            <span class=\"ekit-accordion-title\">How Much Money Need to Start Investing?<\/span>\n\n                            \n                                <div class=\"ekit_accordion_icon_group\">\n                                    <div class=\"ekit_accordion_normal_icon\">\n                                        <!-- Normal Icon -->\n                                        <i aria-hidden=\"true\" class=\"icon-open icon-right xts-icon xts-chevron-down\"><\/i>                                    <\/div>\n\n                                    <div class=\"ekit_accordion_active_icon\">\n                                        <!-- Active Icon -->\n                                        <i aria-hidden=\"true\" class=\"icon-closed icon-right xts-icon xts-chevron-up\"><\/i>                                    <\/div>\n\n                                <\/div>\n\n                            \n                                                    <\/a>\n                    <\/div>\n\n                    <div id=\"Collapse-9ab8e1769f1441a03338\" class=\" collapse\" aria-labelledby=\"primaryHeading-3-cae8ec3\" data-parent=\"#accordion-69f1441a03338\">\n\n                        <div class=\"elementskit-card-body ekit-accordion--content\">\n                            <div>As of now, you can invest a minimum of INR 3 lakhs per deal. This has been set to ensure that you have sufficient liquidity to invest in an alternative investment class and the required risk appetite for the same.<\/div>                        <\/div>\n\n                    <\/div>\n\n                <\/div><!-- .elementskit-card END -->\n\n                \n                <div class=\"elementskit-card \">\n                    <div class=\"elementskit-card-header\" id=\"primaryHeading-4-cae8ec3\">\n                        <a href=\"#collapse-464d43769f1441a03338\" class=\"ekit-accordion--toggler elementskit-btn-link collapsed\" data-ekit-toggle=\"collapse\" data-target=\"#Collapse-464d43769f1441a03338\" aria-expanded=\"false\" aria-controls=\"Collapse-464d43769f1441a03338\">\n                            \n                            <span class=\"ekit-accordion-title\">Who can invest on invoice discounting?<\/span>\n\n                            \n                                <div class=\"ekit_accordion_icon_group\">\n                                    <div class=\"ekit_accordion_normal_icon\">\n                                        <!-- Normal Icon -->\n                                        <i aria-hidden=\"true\" class=\"icon-open icon-right xts-icon xts-chevron-down\"><\/i>                                    <\/div>\n\n                                    <div class=\"ekit_accordion_active_icon\">\n                                        <!-- Active Icon -->\n                                        <i aria-hidden=\"true\" class=\"icon-closed icon-right xts-icon xts-chevron-up\"><\/i>                                    <\/div>\n\n                                <\/div>\n\n                            \n                                                    <\/a>\n                    <\/div>\n\n                    <div id=\"Collapse-464d43769f1441a03338\" class=\" collapse\" aria-labelledby=\"primaryHeading-4-cae8ec3\" data-parent=\"#accordion-69f1441a03338\">\n\n                        <div class=\"elementskit-card-body ekit-accordion--content\">\n                            <div>\"You can invest in invoice discounting On the KredX platform if you are:<br \/>1. An Individual resident investors<br \/>2. HUF \/ Proprietorship registered in India<br \/>3. Institutional investors<br \/>4. Banks, NBFCs and other Financial Institutions<br \/>5. NRI (Provided you have an NRO account and comply with basic predefined KYC guidelines, i.e., PAN card and valid Indian address proof)\"<\/div>                        <\/div>\n\n                    <\/div>\n\n                <\/div><!-- .elementskit-card END -->\n\n                                        <\/div>\n    <\/div>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>People invest money to grow their wealth and fulfil their long-cherished financial goals. There are many investment options in India, such as mutual funds, bank deposits and government schemes. People deposit their hard-earned money into these investments according to their risk profile and financial requirements. Many investors prefer short-term investments as that helps them make [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":13369,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[246],"tags":[72,36,93,37],"class_list":["post-13368","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investments","tag-bill-discounting","tag-business-loan","tag-investment-options","tag-invoice-discounting"],"_links":{"self":[{"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/posts\/13368","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/comments?post=13368"}],"version-history":[{"count":42,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/posts\/13368\/revisions"}],"predecessor-version":[{"id":16975,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/posts\/13368\/revisions\/16975"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/media\/13369"}],"wp:attachment":[{"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/media?parent=13368"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/categories?post=13368"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/tags?post=13368"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}