When it comes to investing, there are plenty of options. However, not all of them will be right for your specific needs. Some investments might be too risky while others won’t give you the returns you need over the long term.

But there is one type of investment that can fit any portfolio short-term investments. Short-term investments are typically defined as less than five years and don’t always have to be tied down in one place. In other words, they are flexible!

Research the investment

The first step in choosing a suitable investment is to research it. Researching an investment can be daunting but you must do your due diligence before making any decisions. The best short-term high-yield investments are those with a good track record and low risk. Look for investments with low volatility and high liquidity.

You should research the following:

• The company behind the product or service. What is their reputation? How long have they been in business? Are they growing rapidly or slowly? Do they have any competitors that are threatening their position in the market?
• The market for which you’re investing-how big is it, and how much growth does it show potential for over time (or at least during your investment period)?
• Risk factors associated with this particular type of financial instrument; for example, bonds generally offer lower returns than stocks but also carry less risk because if things go badly for whatever company issued them out, nothing may be left after defaulting on their bonds’ interest payments.

Consider the risk

Risk is a part of investing. It’s not the same as volatility, though, so it’s essential to understand what risk means for your portfolio. You can measure risk in several ways:

• Volatility-how much the value of your investment fluctuates over time
• Standard deviation-a statistical measure that shows how much returns vary from the average return of an investment or portfolio
• Beta-a measure of how closely an asset’s returns move with those in its benchmark index (e.g. S&P 500)

You’ll want to consider these measures when choosing investments for your short-term portfolio because they’ll help you determine how risky an investment might be compared with others available at the same time frame and risk level.

Review your plans.

Taking a step back and considering your plans is essential when considering short-term investments. Your goals will help determine the type of investment best for you. For example, if one of your goals is to purchase a house in the next five years, but you don’t have enough money saved up yet.

Investing in bonds or CDs may not be ideal because they will come with low returns compared with other options when interest rates rise again (which they inevitably will).

In addition to aligning with your goals, short-term investments should also be realistic-and this goes both ways – if something seems too good to be true (like high returns without much risk), then it probably isn’t worth pursuing.

Keep things simple

If you invest in something, you must understand how it works. This can be especially difficult with short-term investments because many different types of products are available. You don’t want to invest in something that is too complicated or will take too much time to learn about before investing.

As an example, let’s say someone wanted to use options as their short-term investment strategy but didn’t know anything about them before doing so they might choose some expensive options trading software instead of just using a simple spreadsheet program like Excel or Google Sheets (or even just pen and paper).

Make sure you’re comfortable with it.

It is essential to ensure you understand the investment, and that it fits your portfolio well. If you have questions, ask them!

An excellent way to do this is by reading the fund prospectus or other detailed documents, that explain the investments. You can also talk with your financial advisor about how these funds work and whether or not they meet your needs.

Make sure that whatever short-term investment(s) you choose will help you achieve long-term goals like saving for retirement or buying a home without putting too much risk on the table at once.

There you go!

Ultimately, it’s important to remember that short-term investing is not a one-size-fits-all solution. There are many different types of investments, each with its unique set of risks and rewards.

Your goal should be to find something that suits your personal needs as well as your long-term goals so that when it comes time for an investment decision, you can make an informed choice based on what matters most to you personally (and maybe even selfishly).