4 Best Low-Risk Investments

Currently, the investment market is growing more and more, and many people have started to be interested in investing a part of their money.

Whether to have an extra income or to have more financial tranquility and live only on investment income.

There are several investment options on the market, but it is important to consider several factors when investing.

Thus, it is important to know the best options to make a good choice: currently, there are several possibilities for low-risk investments, which suit all types of families, incomes, and objectives.

First of all, it is important to be aware that even low-risk investment can make you lose money as they are not a no-risk investment, so there is a low chance of you losing money if the investment doesn’t work out, since unlike bank accounts, these products are not FDIC insured.

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1- Corporate Bonds

Investing in bonds is an excellent way to earn some return with your capital while reducing the risk of capital losses.

In this kind of investment, investors buy corporate bonds for a predetermined period. In return, the company makes a legal commitment to pay interest as agreed to bondholders. When a corporate bond matures, or reaches the end of the term, the company repays the bondholder.

In other words, an investor who buys a corporate bond is effectively lending the company money in exchange for a series of interest payments, but these bonds can also be actively traded on the secondary market.

2- Treasury Notes, Treasury Bills and Treasury Bonds

This type of investment is offered by the federal government, in this way, investors or consumers have the chance to buy fixed income securities to finance their operations, some of the securities offered are Treasury Notes, Treasury Bills and Treasury Bonds.

In this type of investment, investors lend money to the US government and in return, investors receive interest or a rate of return from the US government. Also, all bonds have different dates, so it is common to pay interest in different ways.

3- Money Market Mutual Funds

The Money Market Mutual Funds is a kind of investment which you invest in cash and cash equivalent securities with highly liquid, near-term instruments. Desta maneira é possível investir em Commercial paper, U.S. Treasuries, Certificates of deposit (CDs), Bankers’ Acceptances, etc.

Considered a low-risk investment, Money Market Mutual Funds is a savings and investment option offered by brokerages, banks, and mutual fund companies.  As such, it is ideal for short-term investment purposes or for building an emergency fund.

4- Fixed Annuities

A Fixed Annuity is a financial product that offers guaranteed rates. In this way, investors pay a fixed amount in advance and in return receive payments over time.

With a fixed interest rate, you have access to information such as how much your annuity will grow and how much income it will pay out.

One of the great advantages of Fixed Annuities is the guarantee of the return on the contributions you make, that is, with the fixed annuity, investors receive guaranteed payments for a while.

Conclusion

After you see all these investment options, it’s up to you to choose the one that best fits your needs. However, first of all it is necessary to analyze the pros and cons of investing in something.

Regardless of the type of investment you want to make, it is interesting to know all the details, and to count on the help of professionals who will be able to guide you in choosing these alternatives.