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Low Risk Investments

Investing in a financial instrument is always accompanied by some level of risk, whether it's the possibility of earning no returns at all or losing a portion of your investment. However, for those who are cautious and want to hedge their bets against market downturns, there are low-risk investments that can provide a stable return on investment.

Guaranteed Investments​

One of the most secure investment options is a guaranteed instrument issued by insurance companies or banks. These products guarantee to pay back the initial principal amount invested at maturity, regardless of market conditions. This type of security is often referred to as a CD (Certificate of Deposit) in the US and UK, although it can also be offered under different names by other financial institutions.

Pros​

  • Offers fixed returns
  • No risk of losing investment value
  • Time deposit with a specified maturity date

Cons​

  • Low returns compared to other investments options
  • May require a lock-in period for the entire term
  • Not very liquid, as you cannot withdraw your money before maturity