Searching for high yields is often an exercise in futility; a vast number of low-risk investments tend to attract a low return to their owners.On the other hand, low investments with high returns carry a considerable risk in exchange for the high returns.
In view of these factors, there is a need to look out for the best investment to venture into and earn great returns.Finding the best investment opportunities for you hinges on your financial needs and goals. Below is a detailed description of some of the best low-risk investments for high return.
1. Peer to Peer Lending
Investing in peer to peer lending program can lead to high returns for investors that are capable of risking their capital. It is one of the best low-risk investments to look out for. Instead of buying shares from a company or investing in its future, you get to lend someone your money in the hope that they will pay you back later.
Companies like Lendingclub offer the necessities that are crucial in setting up investment. With this, you acquire a chance to screen legit borrowers and make a decision on the loans that you want to make on your own as well as how to spread the risk by pulling funds with other investors.
2. High-interest savings
With a savings account, you need not to worry about the risks associated with investments. You acquire a great chance to earn a considerable amount of interest as long as you keep your money on deposit.
Opening such an account is fast and easy, though you have to follow the right procedure for its success. Besides, you ought to ensure that you choose a trusted bank with high rates, online account management, natural deposits as well as excellent customer care services. This is to ensure that your investment target is guaranteed and safe.
Compared to other precious metals, gold is more popular to investors. Most investors invest in gold to diversify risks, particularly as derivatives contracts like futures. The gold market has recently been marked by a high volatility but is among the most secure haven when used as hedging properties in many developed countries.
4. Real Estate
Investing in real estate is a killer strategy that can earn you high returns. It’s specially designed for investors who want to invest in large-scale properties such as malls, apartments and many more. By renting or leasing your property, you can acquire high returns at low risk.
5. Certificate of Deposit
This is available at any bank or credit union of your choice. Through your broker, certificate of deposit offers you a fixed interest rate for a duration of time through which you can use any amount of capital in each investment. Once the investment reaches maturity, you get to withdraw it at a very high-interest.
6. Credit Card Rewards
These cards offer rewards and bonuses inform of points, credits and cash for payment based on how much you spend every month. The cards are provided by banks, other financial institutions. These returns are more or less bonus you earn when you buy goods and services. The more you buy the higher the return.
7. Savings Bond
These bonds are issued by the federal government, and they offer high security for you to invest your money. Depending on the type of bond you purchase, you obtain certain inflammation protection. The bonds can be bought directly through the Department of Treasury, then invest it by opening a TreasuryDirect account online.
8. Treasury inflation-protected securities
TIPS is an investment bond offered by the by the federal government that safeguards you from effects of inflation. Though TIPS offers low-interest rate, you are guaranteed a rise in your investment as the inflation rate rises. It is one of the best and most secure ways to invest, as you are assured that no crisis or failure will occur because it is safeguarded by the Federal Government.
9. Money market Funds
It entails a pool of securities like municipal bonds which you can invest via a fund administrator. The good thing about Money Market is that the fund manager invests for you hence he is responsible for any risks that may occur.
10. Cash Value Life Insurance
Only specific forms of life insurances will accrue interest with whole and universal life insurances are gaining additional value beyond your investment, which you can borrow against, without incurring any tax penalties.
Annuities are useful when you are planning your investment strategy. These types of investments are a little bit complex and may require the services of a financial planner. With right planner, the benefit are overwhelming.
12. Dividend-paying stocks
You can squeeze a little bit of your capital through investing in mutual funds that have excellent dividend rates. It is not easy to pick a trading tool as companies may falter and take down your investment with it. Nevertheless, if you can identify reliable company then you stand a chance of securing a higher returns.
13. Online Checking Account
An online account is excellent if you do not want to spend most of your time visiting a physical one. The safest way to invest your cash is by using a licensed financial institution that pays a higher interest rate on these accounts.
14. Bank bonuses
If you have extra cash to save, you can keep it in financial institutions like banks for around 6 to 18 months. These institutions will offer you vast bonuses as a reward for saving with them.
15. Municipal Bonds
Government entities issue municipal bonds when they need to borrow money. These bonds are among the most secure ways through which you can invest your money. Besides, you are exempted from paying taxes, which is a significant advantage to you.
16. Preferred Stocks
This is a hybrid security that acts as a bond in most instances but trades like a stock. It has minimal liquidity risk and can be sold at any time without penalty. Besides, its usually pays quarterly or monthly.
17. Forex Trading
You can also invest in forex trading through which you get to trade your currency and acquire profits depending on the amount of money you have. But you must be good in forex trading to reap maximum benefits.
Related Articles about Forex Basics:
- How Much Capital Is Required To Start Forex Trading
- How to Open a Forex Trading Account
- Practice Forex & CFD Trading Risk Free with a No Deposit Bonus
It is essential to understand that there is no entirely risk-free investment in the financial world and every investor should always be ready to take risks. You can invest money and make profits as long as you choose a security strategy.
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