I need to generate some monetary growth in about 6 months. I can earn what I need, but it would be nice to surpass my goal. I have 1000 to invest. I would like to know what would be my best bet, for a low risk, high return investment option. What would you consider for a 6 month (or less) investment?
If you have a specific monetary goal in mind, it would be good if you said what that goal is, and folks would be able to think in terms of investment options that might reach that goal. Otherwise, we’ll all just be guessing as to what you’re referring to by “high return”.
(My assumption, given the amount you have to invest, is that you’re referring to something way beyond what I’d think of as being attainable using a low risk investment strategy. but that’s probably because I’m making an invalid assumption as to your monetary goal.)
A very low risk 6 month investment might get you something like 2% a year. After 6 months you’d have $1,020.
A higher risk investment would call for going to Vegas and putting it all on number 23 on the roulette wheel. That would get you $32,000 over 20 seconds, if you win - which is only 34-to-1. An annual return of 5,050,000,000% per year if you keep doing it.
Or you could buy stock in something. This, potentially, could return anything from 0% to you-name-it.
As WillGolfForFood pointed out, it’s probable that you’re expectations of what is a reasonable return are way off.
$1,000 is a lot of money to find lying on the street. But it’s not squat, unless you are taking a very long term view, when it comes to investing.
Ooops, that would be $1,010 after 6 months, not $1,020.
“Low Risk, High Return”
There ain’t no such animal, despite what marketers and portfolio managers would have you believe. It’s always a tradeoff.
If you can’t lose your starting capital, and your horizon is six months, park it in a bank CD.
My goal is 4000 by August…Just to reiterate, I am not fully relying on investment to earn this, I just want to maximize my potential as much as possible…
Stick the $1000 in a bank CD and earn the other $3000. Over such a short time scale, any investments with potential to make more than a few percent are just gambling, same as taking it to Vegas. Better not to risk what you already have, in my opinion.
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I second Giraffe’s suggestion.