When investing a cash surplus, it's only natural to seek the highest rate of return for your investment. Four factors must be considered when making your investment decisions:
Each factor plays an important role in determining the rate of return you receive on your invested cash surplus. These factors can also help you determine how much to invest and when to invest your surplus.
There are many investment opportunities available for your cash surplus. You must consider the advantages and disadvantages as well as the levels of risk, maturity, liquidity, and the yields of each of your investment opportunities. The following are just a few of the investment opportunities you may have: