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	<title>Financiere &#187; money market</title>
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	<description>World Business and Finance News financiere.co.uk</description>
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		<title>The Advantages of Short-Term Investments</title>
		<link>http://www.financiere.co.uk/the-advantages-of-short-term-investments-266/</link>
		<comments>http://www.financiere.co.uk/the-advantages-of-short-term-investments-266/#comments</comments>
		<pubDate>Wed, 17 Mar 2010 15:20:41 +0000</pubDate>
		<dc:creator>Jason</dc:creator>
				<category><![CDATA[Latest News]]></category>
		<category><![CDATA[Savings & Investment]]></category>
		<category><![CDATA[interest]]></category>
		<category><![CDATA[invest]]></category>
		<category><![CDATA[investment]]></category>
		<category><![CDATA[money market]]></category>
		<category><![CDATA[mutual funds]]></category>
		<category><![CDATA[profit]]></category>
		<category><![CDATA[stock]]></category>

		<guid isPermaLink="false">http://www.financiere.co.uk/?p=266</guid>
		<description><![CDATA[The Advantage of Short-Term Investments
Everyone invests for their future, whether it's about dream home, education, or establishing a new business. Each of these events become apparent at different times in life and as a result need to be planned within certain time frames. A short-term investment strategy within a well-diversified, long-term investment plan is the key to dealing with financial needs as they occur. 
Short-term investment means duration of investments from minimum 3 months to 3 years max. Investors apply a general rule of thumb of three years, and anything under that is measured a short-term investment. Short-term investments have either low interest or high stakes, depending on where you invest your money. It is helpful for making more profit from your cash savings or liquid assets. 
Whether it's about saving funds for next Christmas, accruing the down-payment on a home that you plan to buy in the next year or two, or placing the cash together for a personal business, short-term investments are about making the most of your money in a short span of time with the slightest amount of risk and penalties. Short-term investments can be converted into cash or rolled over into other short-term or long-term investments. 
Short-term investments always protect long-term investments. Stocks and real estate have a high interest rate particularly if you keep them for a long period of time. The problem begins when you have a financial emergency where you need instant cash. Without delay, you are forced to liquidate your long-term investments, most of the times at a loss. 
The solution is to maintain short-term investments that are easy to liquidate in case of an emergency. Cash itself offers no interest. A savings account is not good at all for short term investments because the amount of yield is almost negligible and whatever is earned goes as tax and other bank charges. It is up to you to plan your investments in accordance with the events in your life. Different events happen at different times and need to be planned for accordingly. In designing your financial chart, map out what you need and when you will need it. Five questions you should ask yourself are as follows: 
•	What are my financial goals? 
•	How much money do I need to invest? 
•	How long can I wait until I need the cash? 
•	How much flexibility do I have within this time frame? 
•	Can I afford to compromise my short term investments? 
The drawbacks of short-term investment are high risk and low yield. If you invest short-term in stocks, the risk will be higher because of the cyclical nature of most stock markets. Another problem is tax consequences of investment made for less than a year and no dividends. 
Most cautious investors try to play safe with their investments therefore they opt for safer short-term investments in the form of treasury bills a.k.a. T-Bills, certificates of deposit a.k.a. CDs and money market funds. T-Bills and CDs have fixed interest rates and maturity time. The disadvantage of fixed investments is that you are penalized if you take the money out before the maturity date. 
Our financial advisory division advises investing your short-term money in money market mutual funds. Their yield can be lower than fixed investments, but the advantage is that you can access your money when you need it. This advantage makes money market funds a great way of protecting your long-term investments by providing you with ready cash in case of emergencies. 
]]></description>
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		<title>Short-Term Bond Funds</title>
		<link>http://www.financiere.co.uk/short-term-bond-funds-242/</link>
		<comments>http://www.financiere.co.uk/short-term-bond-funds-242/#comments</comments>
		<pubDate>Tue, 09 Mar 2010 10:33:24 +0000</pubDate>
		<dc:creator>Jason</dc:creator>
				<category><![CDATA[Latest News]]></category>
		<category><![CDATA[Savings & Investment]]></category>
		<category><![CDATA[Funds]]></category>
		<category><![CDATA[interest]]></category>
		<category><![CDATA[invest]]></category>
		<category><![CDATA[investment]]></category>
		<category><![CDATA[investors]]></category>
		<category><![CDATA[money market]]></category>
		<category><![CDATA[profit]]></category>
		<category><![CDATA[shares]]></category>

		<guid isPermaLink="false">http://www.financiere.co.uk/?p=242</guid>
		<description><![CDATA[If you want greater interest rates in shorter span of time then a short term bond fund may meet your needs. A bond fund pools cash from multiple investors to buy individual bonds that meet the fund's investment purpose. Each bond fund is efficiently handled, and is grouped based on the nature of bonds in which it invests. A usual short term bond fund invests in bonds that will mature in one year to three years.

A short term bond offers a greater potential interest than a money market fund but it carries more risk. When you own a bond or note from a credit-worthy issuer yourself, you will ultimately get the principal plus interest rate you contracted for if you hold the bond or note until it is due. Investing in a bond fund does not work the same way.

If more investors are withdrawing money from the fund rather than investing, the fund managers would then sell bonds in the fund even if it is not feasible to do so. The net asset value (NAV) of a share in a short-term bond fund can vary depending on the value of the bonds possessed by the fund. Shares in short term bond funds tend to fluctuate less than shares in long term bond funds but even in a short term bond fund there is no assurance that you will get back no less than the amount of money you invested into the fund.

Bond funds are subject to interest rate risk which is the risk that the market value of the bonds owned by a fund will differ as interest rates go bearish or bullish. Bond funds are also subject to credit risk which is the risk that the bond issuer may default on its obligation to pay the bondholders. They are subject to prepayment risk which is the risk that the issuers of the bonds owned by a fund will prepay them at a time when interest rates have declined. ]]></description>
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		<title>Fed Raises Discount Rate</title>
		<link>http://www.financiere.co.uk/fed-raises-discount-rate-88/</link>
		<comments>http://www.financiere.co.uk/fed-raises-discount-rate-88/#comments</comments>
		<pubDate>Mon, 22 Feb 2010 14:50:53 +0000</pubDate>
		<dc:creator>Jason</dc:creator>
				<category><![CDATA[Latest News]]></category>
		<category><![CDATA[currency]]></category>
		<category><![CDATA[economy]]></category>
		<category><![CDATA[fed]]></category>
		<category><![CDATA[financial]]></category>
		<category><![CDATA[inflation]]></category>
		<category><![CDATA[joblessness]]></category>
		<category><![CDATA[money market]]></category>
		<category><![CDATA[treasury]]></category>

		<guid isPermaLink="false">http://www.financiere.co.uk/?p=88</guid>
		<description><![CDATA[The U.S. Fed (Federal Reserve Board) increased the discount rate charged to banks for direct loans whereas the chairman Ben Bernanke assured that the Fed and the central bank is aware of the joblessness in United States of America. It is said that the move will cheer financial institutions to rely more on money market treasuries rather than the state bank for liquidity requirements.
The dollar bulled as the Fed retreated gradually from its extraordinary actions to arrest the deepest financial crisis since the great depression. The Fed has released hundreds of billions of dollars in backstop credit to banks, commercial paper borrowers, bond dealers and anxious financial institutions. Our financial advisory division has stated the rise in discount rate as “nonsense” because of high inflation and joblessness. The U.S. economy hasn’t yet recovered completely from financial crises and the expenditure in Afghan and Iraq war is making the situation worst. The act of raising the discount rate is a fraction of a broader move to pull back the extraordinary aid fed provided to fight the financial crisis.]]></description>
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