Session 3- Long Term & Short Term Investing- An In Depth Instruments Study

The Third Developement Session was conducted in an online mode on 2 November, 2024, covering topics related to long and short term investing, advantages and disadvantages, risk factor and how does the duration impacts.

We dived deep into the concept of Momey Markets, a short term investing option. We discussed the various instruments in money market like- Call Money Market, Treasury Bills, Commercial Papers, Certificate of Deposit & Collateralised Borrowing & Lending Obligations (CBLO).

We discussed why the Call Money Market is called so and it’s functioning. Why Treasury Bills are called zero coupon securities and the concept of Promising Note in Commercial Papers. Certificate of Deposits, used by banks to raise money and the various members of the CBLO.

Coming onto the long term investments, how they have an edge over the short term investments in generating more returns, through compounding, why they carry lesser risks and how macroeconomic factors can impact the returns in the long term investments. We discussed in detail about Mutual Funds, Hedge Funds & Exchange Traded Funds. The Junior members were asked questions to test their current knowledge on these concepts by giving them cases, scenarios and examples. We then discussed and worked upon the areas less explored.

Overall, and in conclusion, it was a great session, having conversation with like minded individuals about the topics every finance enthusiast is interested about. Looking forward for more insightful and interactive sessions in the future.