- ETF Strategist
- How to Manage Your Short Term Investments
- Things to Consider Before You Invest
- 7 Safest, Low-Risk Investments for Your Money
- 10 Best Short Term Investments – Safe & Low-Risk Options
- Our List of Low-Risk Investments
- Safe investment bond option
- 15 Safest Investment Ideas with High Return
- Motley Fool Returns
- 3 Rules for Investing in Bond ETFs
- How to Invest in Bonds for Beginners
Are you looking to invest but do not know where or how to start? Here we have compiled a list of safest investment ideas with a high rate of return.
1. Forex Trading
Forex trading is one of the best investment options which can ensure a good income. It is a worldwide decentralized market in which currencies are traded.
Forex trading includes selling, buying and exchange of currencies at the current rate etc. It is immensely a huge trading platform and it is the biggest investment market in the world.
This investment option is unique as it has the characteristics of high liquidity, 24/7 operation, geographical dispersion, the use of leverage to maximize earnings , the short margins of relative profit in contrast to other markets of permanent income etc.
Dividend Reinvestment Plan (DRIP)
Another safe idea is the Dividend Reinvestment Plan. It is an auto investment scheme that facilitates the effortless investment of the payment checks in each quarter routinely into a single-dividend paying company.
This option is accessible for most multinational companies and even for a standalone one like the investor’s broker firm. This plan helps you to save commissions on each equity market investment. It also facilitates you to start your portfolio with a minimum capital.
Another advantage is that you can buy fractional shares and even shares in a rate far below the market value.
3. US Treasury
US Treasury bill is a safe investment bond that is highly reliable with a high rate of return.
One of the major advantages of this bond is the assurance and guarantee given by the US Government. This factor makes this bill a favorite investment idea in many countries of the world. This also deals with the investor’s necessities on capital appreciation and capital preservation.
How to Manage Your Short Term Investments
US Treasury is definitely a sturdy source of revenue for you, and this is the best option to safeguard your assets, particularly in the facade of increasing inflationary situations in the global economic market.
Next in our list are the Bonds. One of the safest investment options with a high rate of return is the Bonds that mature within 3 years or so.
They are in high demand in the current period due to the huge growth rate of US economy and the anticipated outlook of upmove. Municipal bonds and corporate bonds are some other best investment plans for receiving maximum returns.
Things to Consider Before You Invest
It is advised that prior to such investments, a thorough investigation and study on the potential benefits and losses, should be made.
5. Unit Investment Trusts
This is a great investment plan for those who have a thorough knowledge of the market. Their assets range from bonds to stocks and you can see it as an option of steady income or remarkable capital growth. It is different from Mutual Funds in its portfolio composition.
It is not flexible like a Mutual fund. A big advantage that UTI can boast of is that it provides significant tax benefits when compared to Mutual Funds.
7 Safest, Low-Risk Investments for Your Money
Whatsoever is initially decided will remain the same for the whole term of the investment. When it comes to UTI bonds, the investor can redeem his share when the bond matures.
Also Read:Fundamental Differences Between ETFs and Mutual Funds
6. Registered Investment Advisory
This is the best investment option for those who are not adept in managing their money properly. This simple plan ensures safety and good returns. Here a good share of the investor’s capital is given to a qualified investment expert for proper operation.
10 Best Short Term Investments – Safe & Low-Risk Options
This financial enterprise that takes care of your money in your nonattendance is known as the Registered Investment Advisory. Such an advisory consists of both Certified Chartered Financial Analysts and Financial Planners, who help the investor to customize the portfolio based on his expected target returns.
Certificates of Deposits (CDs)
This investment scheme gives very high outputs when compared to treasuries. This is facilitated by the Insurance cover that the Certificates of Deposit offer. The total insurance cover for each investor account is $250,000 and this is the threshold level of each bank.
Any sum larger than this need to be stretched out as CDs from diverse banks. If you want to enjoy the benefit of the varying interest rates, then you can try dispersing your maturity dates over a period of 3 to 5 years. This ensures that your complete money is not committed at a sole rate of interest. If rates are likely to increase in following years, you have the alternative to take advantage of that drift.
Finance experts recommend that instead of investing your money in stocks, it is always sensible to invest in the Index funds.
Our List of Low-Risk Investments
For the past three decades, the return ration in this plan has been huge. Index Funds proliferate in gathering low beta and high dividend paying stocks. Thus in a way it is an ideal blend of safety with high returns.
Investing in Index funds does not only give high returns, but also ensures the safety and security of your money.
Safe investment bond option
The safety in the individual stocks is however comparatively lower.
When weighed against stocks, an Exchange Traded Fund or ETF is a better option to uphold the return ratio even if the dispersion potential of the returns is relatively thin. It works even if any possible superior information about the stock is doubtful to augment the profit, when bought in their typical stocks mode.
This is chiefly because they follow the value of the core company, or the goods, and they never try to do better than the Index like in the exemplar of Index Funds. What they do is to imitate the performance. Here you experience the same pliability of trading as in the case of stocks.
10. Life Cycle Funds
This type of investment is a vibrant mode of investment where the investor profile slowly undergo change and become less risky as years pass by. This is the best investment plan for those investors who wish to have a single holding for a long term.
With time, these plans generate a good income as the base capital value go up over a period of many years. This equilibrium is achieved by the steady rise of income and by the slow receding of stock market positions.
11. Individual Retirement Account
Individual Retirement Account is one of the best investment plans in older years. It is widely regarded as an excellent retirement investment plan. The investors in this plan can enjoy the benefits of reduced tax rate which is the main feature of any retirement based portfolio.
It will also take care of the future tax deductions. Here a significant compound interest is accumulated over a point of time from systematic investments.
Gold has always been the highly acclaimed safest investment plan which ensures high returns. Though the returns from this investment have slowed down currently, it is likely to go up in the future.
15 Safest Investment Ideas with High Return
Every culture links a value of high safety and security with gold investments. A striking feature is that it is unaffected by inflation and hence its demand has always been on the high. It is an effective investment idea which can withstand the instability related to the equity market.
Paintings, Coins, Collectibles
Conversely, apart from regular financial investment solutions, even your hobbies and favorite passion can act as safe investment idea that will generate a decent and steady income. Antique paintings, coins and other collectibles whose worth and value increases as age goes by, comes under this sensible plan. They can be bought or sold in various exhibitions and auctions, for high returns. Today, there is a huge population who are ready to invest in such antiques.
This investment plan is the safest option in your old age.
Motley Fool Returns
Variable Annuity is regarded as the best retirement option by the economic experts. A desirable feature of this scheme is that the investor gets a life insurance cover in addition to the options of reinvesting money in the preferred stocks and bonds. Here, by making use of various types of investments in the same plan, the investors can make a good amount of profit by enjoying an uncompromised security to the capital.
3 Rules for Investing in Bond ETFs
This is obviously one of the safest investment ideas which can guarantee a high return. Here the return is based on your skill of judgment, dexterity of timing and the ability to invest in the right property.
How to Invest in Bonds for Beginners
Before investing, it is advisable to take expert guidance from the real estate professionals. You also need to take into consideration such factors like tax proposition and liquidity prerequisite.
This is very important as it will have a direct influence on your returns.
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