Nowadays, more and more investment options are available to secure your financial future. Have you started allocating your funds? In the midst of a dynamic financial market, short-term investment has become an attractive choice to grow your money because it offers high liquidity and relatively measurable risks.
What Is a Short-Term Investment?
As the name suggests, a short-term investment is a fund placement instrument for a short duration, usually carried out with a tenor under one year or even just a few months.
Many people utilize this instrument to achieve specific short-term financial goals. For example, if you plan to buy a new laptop worth Rp6,000,000 within the next 6 months, you need to set aside Rp1,000,000 each month. During this money-gathering period, rather than letting the funds sit idle in a regular account, it would be much more profitable if they were invested for a short term to earn returns or interest.
Getting to Know Various Types of Short-Term Investments: What Are They?
There are several types of short-term investments that are highly popular in Indonesia due to their safety, simplicity, and short maturity period (under 1 year). Some of them include:
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Term Deposits: Storing funds for a certain period (starting from 1, 3, 6 and up to 12 months) with a safe and competitive fixed interest rate.
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Money Market Mutual Funds (RDPU): An instrument that places funds in money market effects and securities with a maturity of less than 1 year. Its liquidity is high, and its risk is relatively the lowest among other types of mutual funds.
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Lockable Savings Features: A practical solution from digital banks to lock funds with high interest rates without penalties, even with flexible tenor options within a matter of days or months.
Another alternative: Retail State Securities (SBN Ritel)
As an additional note, the government also issues Retail State Securities (SBN Ritel) such as ORI or Sukuk Tabungan. Although these instruments are often sought after because they are highly secure and offer attractive monthly coupons, keep in mind that Retail SBN generally has a tenor of 2 to 4 years. Therefore, SBN is actually more accurately categorized as a medium-term investment, rather than a pure short-term one.
Short-Term Investment Options with Small Capital
In the past, investing was often identical with large capital up to millions of rupiah. However, today, the trend of short-term investment with small capital has become common and accessible to anyone, from university students to first-jobber employees.
Many money market instruments as well as modern digital banking features allow you to start investing with a nominal value of only Rp1,000,000 or even less. The presence of this option makes it easier for you to learn financial discipline consistently without burdening your monthly expenses. Even with small capital, routinely saved funds can still provide optimal returns thanks to the compounding effect of interest.
4 Main Advantages of Short-Term Investment
1. Flexibility in withdrawing money (High liquidity)
When compared to long-term investments such as property or stocks, short-term instruments offer much better flexibility. You don't need to wait for years to withdraw your investment because the maturity period ranges under 1 year.
2. Highly useful in urgent situations
Due to its flexible and easy-to-liquidate nature, this instrument can be relied upon as a financial cushion during emergencies. Holding pure cash is indeed instant, but its value is eroded by inflation since it doesn't yield interest. Placing emergency funds in a liquid, short-term instrument is a much smarter strategy.
3. Real and fast results
This investment provides returns that can be enjoyed faster. These instant results bring their own satisfaction because you can immediately see the growth of your assets within just a matter of weeks or months after the investment begins.
4. An investment suitable for beginners
If you fall into the beginner investor category, this instrument is the safest starting point. In addition to offering the various benefits mentioned above, the risk tends to be minimal and its movement is stable, so you can learn to manage finances without worrying about losing your principal capital.
Where Can You Find Safe and Profitable Short-Term Investments? Try Bank Jago’s Features
So, what is the practical way to start a short-term investment? You can take advantage of the digital features from Bank Jago. Here are the options you can start trying out:
1. Short-term investing or saving in a Jago Locked Pocket
Bank Jago's Locked Pocket is a feature in the Jago application designed to help you manage your finances with greater discipline. This feature allows you to lock a certain amount of funds for a specific period to avoid impulsive spending.
The Locked Pocket is an ideal short-term investment option with small capital because it can be started with just Rp100,000 and a locking duration as short as 14 days. Interestingly, its interest calculation system is done on a daily basis, so you can accumulate profit every day, which will be liquidated immediately once the locking period ends. You can also flexibly top up your balance at any time.
Also read: What's the Difference Between the Locked Pocket and Saving Pocket?
2. Bank Jago Term Deposit
In addition to the Locked Pocket, you can also choose the Jago Term Deposit. Saving in a Jago Term Deposit can be started with a short tenor ranging from 1 month, 3 months, 6 months, up to 12 months. This choice of time frame is highly adaptive to meet your various short-term investment needs. The interest rates offered are also varied and competitive, adjusting to the amount of money you save.
You can open all the features above directly from the Jago application within minutes in a paperless manner, without needing to spend time visiting a physical branch office.
Read all the benefits of opening a Jago Deposit here.
Also read: What's the Difference Between the Locked Pocket and Term Deposit?
FAQ About Short-Term Investment
1. Why are short-term instruments often called investments suitable for beginners?
For those who are just starting out, the biggest challenge is usually the fear of loss due to market volatility. Short-term instruments such as Term Deposits or Locked Pockets provide certain results in a short time without the need to monitor fluctuating charts, making them a safe way to learn financial discipline.
2. How do I optimize fund growth to experience daily investment profits?
The key lies in the consistency of utilizing competitive interest calculated from your savings balance. By routinely setting aside funds into yield-generating instruments like the Locked Pocket, your assets will keep working to produce returns that accumulate in real-time until the locking period ends.
