How to invest in the short term and obtain profitability

The world of finance offers several options to make your money grow. If you have capital available and are looking to make a profit in less than two years, you should be aware of short-term investment alternatives.

In this article we will guide you through the basics of short-term investing, explain what factors to take into account to choose the most suitable option and present you with a range of possibilities for you to invest your money profitably.

Short-Term Investing: Key Concepts


Short-term investing means allocating your money to financial instruments with a time horizon of less than two years. The main characteristic of these investments is their high liquidity. This means that you can convert your investment into cash quickly and easily, which is ideal if you need to dispose of your money in a relatively short period of time.

Short-term investments are ideal for various purposes, such as:

  • Saving for a nearby trip.
  • Gathering a down payment on a car or home.
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  • Generate an emergency fund for contingencies.
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Factors for choosing the best short-term investment


In order to make a wise decision when investing for the short term, you should consider some key factors:

  • Your risk tolerance: Evaluate what level of risk you are willing to take. Investments with higher short-term returns often involve a higher risk of losing some of the invested capital.
  • Investment term: Clearly define when you will need the money. This will allow youá to choose options that fit your time horizon.
  • Expected return: Determine how much return you want from your investment. Keep in mind that the shorter the term, the lower the return will usually be.
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Alternatives for investing money in the short term


The following is an overview of the main short-term investment alternatives, classified according to their level of risk:

Low risk instruments

  • Interest-bearing savings accounts: Banks and financial institutions offer savings accounts that generate a small return on the deposited balance. Although the profitability is low, they are highly liquid and safe instruments.  
  • Fixed-term deposits: Fixed-term deposits allow you to invest for a short term in exchange for a fixed interest rate. They work in a similar way to savings accounts, but with the difference that your money is tied up for a certain period of time (generally from months to a year). The longer the term, the higher the interest rate. They are a safe and predictable option for defined short terms.  
  • Treasury Bills: Treasury Bills are short-term debt securities issued by the government. They function as a loan that you make to the government and in return you receive a return at maturity. They offer a low but safe return, as they are backed by the government.

Medium risk instruments

  • Short-term mutual funds: Mutual funds are collective investment vehicles that pool the money of several investors and manage it in a diversified portfolio. There are short-term investment funds that invest in fixed income and equity assets, offering a potentially higher return than the options mentioned above. You should inquire about the risk profile of the fund before investing.
  • Bank payables: Bank promissory notes are debt instruments issued by banks on a short-term basis. They function as a loan that you make to the bank and in return you receive a return at maturity. They offer a slightly higher return than savings accounts and are relatively safe, as they are guaranteed by the financial institution.  

High-risk instruments

  • Crowdlending: Crowdlending is a form of crowdfunding in which you lend money directly to companies or individuals through online platforms. It usually offers an attractive return, but also involves a higher risk of default. You should be well informed about the platform, the borrowers and their credit history before investing.
  • Cryptocurrencies: Cryptocurrencies are decentralized digital assets that have gained popularity in recent years. Investing in cryptocurrencies can generate high returns in the short term, but also involves high risk due to their high volatility. Only invest in cryptocurrencies if you understand the risks involved and are willing to assume them.

Remember: This list is not exhaustive and there are other short-term investment alternatives available. Do your research and seek advice from a financial professional before making any decisions.

Remember: This list is not exhaustive and there are other short-term investment alternatives available.



Short-term investments are a valuable tool for generating returns over a limited time horizon. Analyze your risk profile, define your financial objectives and choose the alternative that best suits your needs. Remember that profitability and risk go hand in hand: the higher the expected profitability, the higher the risk you should assume. Do not invest in products you do not understand and diversify your portfolio to mitigate risks. With the right strategy, short-term investments can help you reach your short-term financial goals.

We leave you with some final tips for short-term investing and earning returns:

Infórmate y asesórate: Don't invest blindly. Read, research and learn about the different investment alternatives before making a decision. If necessary, consult with a professional financial advisor who can guide you according to your risk profile and financial objectives.

Diversify your investment: Don't put all your eggs in one basket. Distribute your capital among different alternatives to minimize risk. Combine low-risk options with higher-return options according to your risk tolerance.

Review your investment periodically: Market conditions and your financial needs may change. Track your investment periodically and readjust your strategy if necessary.

Be patient and disciplined: Investing is a process that requires patience and discipline. Don't get carried away by emotions or seek to get rich quick. Define a short-term investment plan and stick to it.

Start exploring the world of short-term investments and discover how you can grow your money wisely and safely. Remember that short-term profitability is possible, but you should always be aware of the risks involved and make informed decisions.