There are many safe investments with high returns for people of any income level. While individually middling, they are often fairly liquid and important parts of balanced portfolios. Investors who tolerate large risks still keep some of their capital in relatively safe investments to maintain its safety and liquidity. As an investor, prioritize safety over return to drastically minimize your losses. Read on to discover the five best safe investments with high returns for any income.
Money Market Funds
Money market funds are security pools that you invest in via a fund manager. Often, the return rates are higher than a normal bank account, and the pool of investments reduces the risk of loss. Additionally, since a fund manager invests for you, you don’t need to ruminate over which funds to invest in. However, various institutions offer a wide variety of money market funds. Therefore, determining the best one for your specific investing needs requires some research. Surely, money market funds provide simple investing solutions requiring little risk and input on your part.
High-Yield Savings Accounts
High-yield savings accounts provide an incredibly safe investment that nets you a large return. There are many savings accounts available with 0.6% yields. If you negotiate, you may be able to secure higher rates, as well. Additionally, savings accounts retain their value and are insured by the government. Therefore, your money is protected even if the financial institution fails. The only risk to consider with this investment is that of inflation, which slowly decreases purchasing power. Absolutely, high-yield savings accounts are one of the safest investments for growing your money.
Treasury Inflation Protected Securities
Treasury Inflation Protected Securities (TIPS) are one of several investment types offered by the United States Treasury. They are bonds with two methods of growth. First, a fixed interest rate provides a growth factor multiplicative with your investment. Second, they come with government-guaranteed inflation protection. Often, TIPS fixed interest rates are less than other investment methods. However, the guaranteed inflation protection on these bonds provides significant returns dependent on inflation rates. Certainly, TIPS are an investment with guaranteed safety and harness that guarantee for significant return potential.
Government Bond Funds
Government bond funds are a form of mutual funds that typically invest in debt securities. They are endorsed by the United States government to pay off debt and fund projects. The funds themselves are not protected by the government, however, so inflation and interest rate fluctuations impact them. This way, they are great for investors seeking low-risk cash flow opportunities due to their government sponsorship and varying interest rates. That said, you can still obtain a bond despite having bad credit. Definitely, government bond funds provide a low-risk opportunity with large return potential.
Exchange traded funds (ETFs) are similar to mutual funds. They pool investor capital to buy a number of securities as a single diversified investment. Also, they are bought and sold like regular stocks. Often, ETFs are great for investors who may not meet the minimum requirements for a mutual fund, because ETF share prices are typically lower. Moreover, ETFs are great for those looking to stretch their investment values over longer terms. Of course, ETFs provide diverse, low risk portfolios at a single, reasonable initial investment.
There is a myriad of great, safe investments with high returns for investors of any income. One such investment is money market funds that provide safe investments via a fund manager, so the solution is hands-off. Another is high-yield savings investments, which are guaranteed never to decrease in value. Treasury Inflation Protected Securities are a third, implementing inflation protection that also provides significant growth. Government bond funds have varying interest rates, making them a great safe option to grow your capital. Finally exchange traded funds require a reasonable investment for a full, diverse, lower-risk portfolio. When searching for safe investments with high returns, consider the investments described above.