There are 5 types of low-risk investments available for asset allocation to securely grow your wealth.  Interest rates are extremely low for the moment. Moreover, the Federal Reserve has updated  it’s interest rate from 0% to 0.25%, the banks have reacted, and average savings account interest rate is now less than 0.06% APY. There are also high yield savings accounts that offer comparably higher yield. Most likely, there will be a little difference in interest rate, but it’s impossible to get high return on investment without taking risks.

 

Low Risk Investments – Top 5 options

Low-risk investment options

1. Treasuries. Treasury Bonds, Treasury Bills and Treasury Notes.

Treasuries can be considered as safe investment options with low risk involved. Treasuries offer significantly higher return than regular or even high yield savings accounts. This type is great option for investors who seek to invest without too much additional risk.

2. Corporate Bonds

If you feel comfortable to accept taking a little more risk for higher return, Corporate Bonds suit your risk profile. Corporate Bonds usually offer higher yield than treasuries. According to St. Louis Federal Reserve, Corporate Bonds offer average annual return of 2.36%.

Please note: High-Grade Corporate Bonds are safe, nevertheless future returns are not guaranteed, so potential losses are possible.

3. Mutual Funds

There are a few types of mutual funds to invest in.

Money Market Mutual Funds

Money Market Mutual Funds invest in short-term securities while offering investors high liquidity and lowest level of volatility. Money Market Mutual Funds are offered by many banks, so you can invest directly from your bank in case you have no brokerage account for trading securities and mutual funds.

Offshore Mutual Funds

Offshore Mutual Funds open access to international markets and allocation of funds in different regions, asset classes, sectors and currencies. Additionally, you may get tax benefits when investing offshore because offshore mutual funds are usually domiciled in tax-efficient jurisdictions, such as Cayman Islands. Investing offshore may enhance your returns and reduce the risks, while giving access to Emerging Markets, where potentially higher results can be achieved by portfolio managers. Some offshore funds also offer conservative options for low-risk investments.

Einvestment Fund

Offshore investment products offered by Einvestment Fund deliver superior returns since Fund’s inception in 2018. The Fund is domiciled in the Cayman Islands, and offers tax-efficient investments with high returns that beat the effect of rising inflation. Special conditions with discounted performance fee are available for retired investors. Such fees policy is strived to make retirement investments producing more income and ensure happy and hassle-free retirement to investors. With Einvestment, you may open offshore investment account online, and start investing with no subscription, management and annual fees. The Fund charges only performance fee from positive returns generated by portfolio managers.

Sustainable Investing

Portfolio managers of the Fund follow sustainable investing strategy, and do not invest the funds in the companies that are not compliant with ESG (Environmental, Social, Governance) policy of the Fund. This includes weapon manufacturers, air polluters, toxic chemicals and alcohol producing companies, and other sectors that harm the nature and society, or are possibly or actually involved in corruption schemes, bribery and forсed labor. Ethical investing is the right way to make the world a better place while saving the nature for the next generations.

When choosing Einvestment, you invest in line with your values, financial goal and risk profile.  The Fund enables investors to allocate their savings to the most cutting-edge companies across the world to efficiently generate high level of income and grow your wealth. Find more information about long-term investment options for monthly income by Einvestment.

Keep in mind: Investing in onshore and offshore mutual funds involves a high degree of risk and cannot be considered as low-risk investments. The marketable value of securities can go up as well as down, and future returns are not guaranteed. Learn more about high-risk investments here.

4. Fixed Annuities for low-risk investments

Fixed annuities enable investors to pay the lump sum in exchange in a series of future payments distributed over time. Generally, fixed annuities operates similarly to Certificates of Deposit. Usually fixed annuities interest rates range from 1% to 4%.

Please be informed: You may be charged an extra fee in case you need to access to your funds before maturity date.

5. Dividend-paying stocks

There are preferred and common stocks available for investment:

Common Stocks

When investing in common stocks, you should select the world-known companies with strong reputation and outstanding historical reports. It should be solid companies that pay reliable dividends over years and have global presence on the market for decades.

Preferred Stocks

Generally, preferred stocks offer higher dividends than corporate bonds, while offering potential to growth and capital appreciation. For the last 120 years, preferred stocks have generated average annual returns of above 7%. The larger share of them is from dividend payments. Preferred stocks may be also bought back by the companies at higher price.

Risk Notice: Dividend payments on preferred and common stocks are not completely guaranteed. However, both types of stocks are regularly selected by investors who seek low-risk investment options.