What is a good short term investment?

I am looking to invest about $5000 in August for one year. What is a good option that will let me invest for a year without paying high tax when it is cashed?

If you want no risk buy a CD. Shop around for the best one year rates.

capital gains are now a record low 15% so if you can hold a year or longer thats great. Personally, If you are not experienced in investing but want to learn, put the money into SPY. SPY is a index fund which tracks the 500 companies in that index. The advantage is that you are diversified and will do as well as the broad market does.

i would go with arna(stock) everybody is excited about it cause its the answer to obesity
and its just exploded and the past few days its falling i would buy now wait till it goes up a dollar or tow and that's short term
i also like aapl for long term

hate to say it, but cocaine

hi invest in indian stocks or u can invest in standard funds.

Since your horizon is short, you imply that you will really need that money in a year. Problem is that several of your answers recommend high risk investments like SPY and India stocks.

True you might make 10% in SPY . . or you might lose 10% in SPY, but if you really need the $5,000 in a year (not $4,500)...Stick with CD's or money market.

One option you have is 6 mo T-bills. You can buy them directly from the government. The interest on T-bills are not subject to state or local taxes and they are considered the safest investment in the world, though one might find arguments to the contrary.

Here is a great way to invest.
www prospera-fund dot com
They are invested with several traders in stocks and FX accounts, (diversified).
There you can invest money to earn 10% a month compounded! After testing with 100.00 it works, and so I invested more, four different options, all 10% a month, "offshore investing".
Examples of compounding: 1000.00 after one year: 3130.00.
or, 200.00 after 5 years: 60,000.00
Do it, and forget it for 5 years, you'll not be sorry.

Source(s):

www.prospera-fund.com
refer. luckyrick