Short-term investment options in the UAE are a form of investment strategy intended to normally produce significant rates of return and liquidity for a short period of time, typically between 1 and 5 years. Such strategies are principally aimed at achieving short-term financial objectives.
In addition, shorter maturity periods of short-term investment schemes have limited risk exposures. Investors with high yields, low cost, and high liquidity now deliver short-term trading opportunities.
Best Investment Funds
The savings account has high liquidity and is one of the safest options for the majority of people. You can withdraw money anytime and anywhere in a convenient manner from your savings account. Yet banks normally offer a return on a savings account of not more than 4-7%.
They are effectively a sort of mutual fund to invest in short-term government certificates or deposit securities with your hard-earned money. The great thing is that investors are still able to withdraw capital from these accounts. However, since restitution takes about 2 to 3 working days, it is not recommended to place the Emergency Savings in liquid funds.
The main advantage of these short-term investment options is the high-interest rate of up to 7%. Due to the fact that money in liquid funds is deposited in financial exchange securities, you can assume a higher security level on your deposit.
One of the best solutions available in the UAE is Fixed Depositing (FD). They are safe investments and up to ten years will comfortably invest your cash in FD.
While a creditor can withdraw the money before the FD expiration date, it is proposed that the money be withdrawn only after the expiration date because this financial instrument is not quite liquid in nature.
For example, if you invest in FD for two years, which gives a 10% interest rate, and decide after six months to withdraw the money, then the financial institution will give you a fixed deposit rate of 6 months that could amount to 6% when you invest the cash in FD.
Recurring deposits (RD) are perfect for borrowers who are unable to spend just one go in the lump sum. Instead, RD gives you versatility on a monthly basis for saving funds. Recurrent deposits in banks and financial institutions shall be at least 6 months and the term shall be at a maximum level of 10 years. However, it should be noted that the RD interest rate is taxable.
This is one of the feasible short-run investment plans especially for investors with extensive knowledge about the stock market. An investor must, though, be at high risk of trading in such a way as equity futures can be fuel for market movement. In addition to these forms of portfolios, the bulk of the derivatives have an expiry period of no more than 3 months.
Precious metals such as gold and silver are regarded as one of the safest investment opportunities because they serve as a short- and long-term safeguard against inflation. The rates of gold and silver have historically been short-term and long-term in volume. This makes these precious metals intelligent and low-risk investments for a brief period of time. In comparison to other short-term trading opportunities in the economy, such investments appear to be more liquid.
Mashreq bank offers all these short-time yet best investment funds. No matter you are a small business or a business empire Mashreq bank has the ultimate investment solutions for you.