Making Money: 5 Low-Risk Investment Options With High Returns

As we strive to reach our goals in life, perhaps most of us wanted to become stable in all our accounts and finances. Thus, this desire can be done by doing hard work and having investments that could give good returns. Along with this, before we enter the world of investing, we should first gain knowledge about it and know the various types of investments.

Having a mindset of getting high returns of your money while committing it to various business endeavors is what an investment means. It is also a way of making a profit more smartly. You lay out your money in the present to receive more in the future.

What’s more interesting about investing is that as long as you have the money, you can always have the chance of getting more profit. However, investments also have its downfall – the financial risks. That’s why it is necessary to know the types of low-risk investments with high returns. For you to get started, here is a list of low-risk investment options that you should consider.

Bank Savings

Although we can say that savings account is not technically an investment, by no means it offers a modest return on your money. With bank accounts, the value of your cash is not going fluctuate, and your money is completely safe. Though inflation can be a reason for erosion, the chance of losing money is low.

Moreover, when you want to access your money anytime, bank savings account is a suitable choice of investment for you.

Money Market Funds

Choosing this kind of investment lets you acquire various financial assets without worrying about the security of your finances and resources. Money market funds are a combination of other low-risk investments such as short-term bonds and certificate of deposits.

The accessibility of this type of low-risk investment makes it an excellent choice for you because you can withdraw your investment without additional charges anytime. For you to be aware, mutual fund companies and brokerage firms are offering this type of investments.

Fixed Annuities

If you are a conservative retirement saver, this kind of low-risk investment is definitely for you. Fix annuities are like pensions that offer a good return on your investment with principal security. It is an agreement between you and the insurance company.

As the annuity contracts of this type of investment come from fixed annuity carries, many people consider it as a low-risk investment. Furthermore, fixed annuities also have excellent features such as letting the investors lay and invest their money without taxations until the day of their retirement.

Preferred Stock

If you are considering to have an investment that provides a low liquidity risk, this type investment is a perfect choice for you. Preferred stocks have a 2 percent higher total amount of expected dividend than the other investment, particularly the certificate of deposits.

Furthermore, preferred stock is a hybrid security investment which has the same process with stock investments but differs in financial instrument bonding features. Upon getting your return on this type of investment; it can be via preferred stock monthly or quarterly, either way, high chances of getting profit is there.

Brokered Certificate of Deposit

This type of investment is at low financial risk; it is suitable for beginners who wanted to enter the world of investing but worry too much about losing their money. Brokered certificate of deposit or CD is a type of investment which was bought from a brokerage firm or a sales representative.

Similar to preferred stocks brokered CDs also do not pay a high return on investments. Hence, it is still a good option for many small investors because it can be marketed with other fixed investments.


To become financially stable, we tend to find ways that could help us make more money without losing a lot of it. One way to achieve this kind of goal is to make investments. Hence, investing money is a complicated procedure that involves high financial risks.

So, as you decide to invest, it is best that you choose the type of investment that offers high returns of money with low possible risks. You may consider the list above as a suggestion for you to start your investments. Also, you could try to consult business financing firms for you to gain enough knowledge about investing.

Contributed by: Ashe Morgan

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