Short Term Investment vs Long Term Investment, Which is More Profitable?

[Suba]

Every time we are going to invest, we will always be faced with two choices, namely long term or short term. Both certainly have their own strengths and weaknesses, but we must be able to make a decision which will be more profitable for us.

Most investors choose short-term investments, because they will get faster returns, but have a higher risk than long-term investments. Short-term investments can also be used as emergency fund reserves.

 

[Stardom22]

As far as I am concerned, the shorter term is the investment portfolio, the more riskier it is. The best part of the short term investment is that it's more profitable.

 

[oldbuddy]

I prefer a daily term, so as it compounds the result is a much higher return from earning more interest each day as the principal increases.

 

[Suba]

As far as I am concerned, the shorter term is the investment portfolio, the more riskier it is. The best part of the short term investment is that it's more profitable.

Everyone has different preferences for choosing long-term or short-term investments, actually it will really depend on their money management. but there are also people who choose both long-term and short-term investments

 

[Springtime]

I personally prefer long term investment. I buy dividend paying blue chip stocks. The price of these blue chip stock fluctuates less. And I receive dividends on a regular basis. That is a great source of passive income.

 

[Suba]

Long-term investment by owning bluechip stock will certainly be very profitable and will receive dividends at a predetermined time. and money from the dividends you receive you can reinvest in other instruments.

 

[Pousinha]

Most investors choose short-term investments, because they will get faster returns, but have a higher risk than long-term investments. Short-term investments can also be used as emergency fund reserves.

In my country it's the other way round: long-term investments use to be riskier than medium-term and short-term ones. Not the risk to lose money (out of the riskiest stocks), but to see shortages of the investment value in the case of a sudden inflation great increasing (as it happened last year, a very common situation in Latin America).

 

[Suba]

Inflation of a country is very difficult for anyone to predict, if stock investors will certainly lose because many companies (issuers) are experiencing losses so that the value of shares falls, maybe even the issuer will go bankrupt, so it would be better to choose long-term investments in gold and property instruments.

 

[Johnson2468]

I feel short term investment is more profitable but it has a higher risk attached to it while long term investment is safer and not as profitable as short term

 

[Bango]

Short term investments are usually more profitable, but they have more risk, but long term investments are safe and you can receive profit from the investment you made for many years.

 

[Suba]

I feel short term investment is more profitable but it has a higher risk attached to it while long term investment is safer and not as profitable as short term

I agree with you, short-term investments have a greater risk, but take profits faster (not bigger). Short-term investments are very suitable for meeting short-term needs, for example paying house rent. Short-term investments are also very vulnerable to inflation so that the inflation rate is likely to be higher than profit.

 

[Blessed19]

They are both profitable depending on how you can manage them. There are some people that know how to manage shirt term investment perfectly and get the most out of it and fail woefully at long term investments but in the other hand there are some that know how to run a long term investment and get the most out of it but fail at short and some can do both. You only need to know which you are good at and run it then find someone that can run the long term and put your money in it and see how it goes well for you.

 

[Suba]

They are both profitable depending on how you can manage them. There are some people that know how to manage shirt term investment perfectly and get the most out of it and fail woefully at long term investments but in the other hand there are some that know how to run a long term investment and get the most out of it but fail at short and some can do both. You only need to know which you are good at and run it then find someone that can run the long term and put your money in it and see how it goes well for you.

You are right that both can be profitable and an investor must know how to manage short-term and long-term investments and investors will certainly find it difficult to choose which is the best because these two investments have different financial goals.

 

[Stardom22]

Short term investments are very risky. The main benefit for it is that it has higher return on investment or interests. On the other hand the long term investments are less riskier with lower ROI

 

[uptrendfinancialsignal]

Short term investments are very risky. The main benefit for it is that it has higher return on investment or interests. On the other hand the long term investments are less riskier with lower ROI

But short term investment and long-term investment carries some level of risk . This is why it is important to study the risk critically before an investment is made.

 

[Suba]

The effect of inflation often exacerbates short-term investments, so that the value of the returns obtained is often not proportional to the inflation rate, even though short-term investments will make profits faster, so that investment funds can be used for other purposes.

 

[nomad]

If you invest for the long term and continue to compound your profits for the long term, long term investment can be better. Short term investment does not give you a lot of profits.

 

[Suba]

If you invest for the long term and continue to compound your profits for the long term, long term investment can be better. Short term investment does not give you a lot of profits.

Even though long-term investments are more profitable and we will also get returns from compound effects and lower risk than short-term investments, before deciding to take long-term investments it would be better for us to evaluate our financial condition, do we not have an urgent need to at least next two years.

 

[nomad]

Long term investment requires you to hold into your assets for extended period of time and not all people are financially fit to hold their investments for a long time.

 

[eldavis]

Both and long and short term investments can be profitable, it mainly depends on what you are after. There are persons who prefer short term investments and there are does who would go for long term.