When it comes to investment decisions, many people like to invest in low-risk options. Especially those people who have never invested before, they feel more comfortable in making low-risk investments. As the living cost is high, it’s important that we invest our money so that we can get some good returns. Here are some good low-risk investment options that can give you high returns.
Peer to Peer Lending
It is a good short term investment. In this kind of investment, instead of buying shares is a company, you are lending the money to someone else who will pay you back. You should screen properly and select the best loan rates to secure a good return with low risk.
Credit Card Rewards
You can get cash back credit card and earn points that can translate into money. Some of the top credit card companies give you very lucrative rewards, which are more than an online savings account or a Certificate of Deposit. For example, if you do $4,000 of your monthly shopping with the credit card, you earn 50,000 points which are worth $500 cash back!
Certificates of Deposit
You can get these certificates from your bank, investment broker or credit union. In this investment, you deposit your money for some time and get a guaranteed return on your money. You can get a fixed interest rate for the period. With a Certificate of Deposit (CD), you deposit your money for a specific length of time in exchange for a guaranteed return on your money. The amount of interest you earn depends on the length of the term of the CD and the interest rate at the time you purchased your CD.
Money Market Funds
It is a mutual fund that is for people who don’t want to lose the principle of their investment. These funds pay out some interest. The goal of this fund is to maintain a Net Asset Value of $1 per share.
You should consider all these options and choose the one that meets your requirements and conditions. All these have very low risks, and if you don’t want to lose your principle, then you should choose one or some of these options.