Investment

Where to invest with minimal risk?

The main rule of investment is that income is always directly related to risk. I want to minimise this.

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Last updated by Urkail
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According to bankrate.com, the following are the best low risk options for investment;

High-yield savings accounts
Savings bonds
Certificates of deposit
Money market funds
Treasury bills, notes, bonds and TIPS
Corporate bonds
Dividend-paying stocks
Preferred stocks
Money market accounts
Fixed annuities

The main rule of investment is that income is always directly related to risk. Accordingly, if you are afraid to take risks, you should not initially count on high income. It's another matter if you are just starting out and just looking for a way to get comfortable in stock trading without losing your investment and at least earning a little. For example, you can try to cooperate with Just2Trade broker. In this case, the following assets can be advised:

  • Preference shares. You can also invest in ordinary ones, but the preference ones have several advantages: a higher dividend rate (usually by a couple of percent), dividends are most often paid once a month or once a quarter, securities can be sold at any time without fees.
  • ETFs. It is especially relevant for small amounts on the account. By buying a share of a fund (ETF), you become a co-owner of a part of a whole package of securities, formed by professionals. The package changes depending on the market situation, but you don't have to understand it.
  • As trite as it sounds, it makes sense to invest in the main currency – dollars and euros.

You can also take a closer look at gold, which was rising especially actively in 2020 (compared to 2019, the price almost doubled). However, the market is in decline now. For those who have already invested it is not favorable situation, but for the rest it is a good chance to buy it cheaper and then make money on growth.