Best Examples of Low Risk Investments

20 May 1

Low-risk investments are more stable and secure as they are not probable to unexpectedly fall in value. Best Examples of low risk investments include money market funds, basic savings accounts, mutual funds, bank deposits, certificate of deposits, treasury bills, annuities, and blue chip stocks.

Blue Chip Stocks – Blue-chip stocks are extremely reliable and low risk because they are the stocks issued from extremely capitalized companies with a history of rising income and profits every year.

Certificate of Deposit (CD) – It is a time-deposit product offered by a lot of financial institutions such as banks and credit unions. Individual CD accounts normally offer higher interest rates than do business CD accounts.

Savings Accounts – These are offered by credit unions or banks and are considered very low risk investments because most banks are FDIC-insured.

Government bonds – These are considered carry low-risk investments because the government guarantees the payment of interest during the life of the bonds, and will refund the principal amount of bonds upon maturity.

Mutual funds – Mutual fund investments take low risk because they are diversified across major benefit classes such as bonds, stocks, money market securities or a mixture of these.

Money market funds – This is a type of mutual fund that is necessary by law to invest in only carry low-risk investment vehicles, but it offers lower returns than most other investments.

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