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Best Low Risk Investments and No Risk Investments

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No Risk Investments

Toxic cartoon 2169887b Best Low Risk Investments and No Risk InvestmentsThere are not many investment opportunities around which do not have any risk at all. Typically those which do exist are only available for small amounts of capital. In many countries, for example, savings accounts held at banks are guaranteed up to a certain level. This means that for small savings accounts you will not lose your money even if the bank goes bust. You won’t get much of a return, however, and if you go over the set level your savings account will not be covered and will go from being a true no risk investment to just being one of the best low risk investments.

Although these bank savings accounts backed by a government guarantee are probably the closest that you can get to a no risk investment – the chances of the bank and the government defaulting are so tiny they are negligible – there are other investment opportunities out there which come with guaranteed returns. You should remember, however, that guaranteed returns are only as safe as the company which guarantees them; if the firm goes bust then your guarantee goes down as well, so they are not absolutely risk free.

Another way to access a no risk investment is to take advantage of promotional offers from firms which want your business for future investments. These will of course be limited in terms of the amount that you can invest, and may have a time limit too, but you can reasonably assume that the risk is zero.

With all of this in mind, here are some of my top tips for no risk investments:

No Risk Investing With Promotion Offers

  • The best way to eradicate risk is to not actually invest your own money. There are two ways to play the financial markets using promotional without risking your own capital. The first is using a ‘no deposit bonus‘. If you  open a new account with Plus 500 and verify your identity then they will give you a small amount of real capital to play with before you even make a deposit. If you can make a profit with this then you can withdraw it after a set number of trades. Like many online brokers they also offer matched deposit bonuses, which means that if you do make a deposit they will match it by adding their own money to your balance as well. With any offer like this you have to place a certain number of trades before you unlock the bonus money, but if you stick to relatively safe low-return trades and only risk the amount that you will eventually unlock as a bonus, then your risk will be very close to zero indeed.
  • Some trading platforms such as Trade24 also offer some called a ‘protected account’ for new traders. This means that for a certain amount of time (or a certain number of trades, depending on the offer), the broker promises to cover any loss which you might make, whilst allowing you to keep your profit.
  • My third pick is an unusual one, and may surprise many. I’m sure some of you will be very sceptical, but I have done this myself and made close to £1000 in less than 2 weeks, with absolutely zero risk. If you know anything at all about investing then you will be familiar with the idea of hedging, but did you know you can use this same principle outside of the world of investing to make money? The idea is simple: you take up free bet offers from all of the betting websites you can find (there are loads of these offers around), and then you use them to hedge each other. So, for example, you bet on a sports team winning a match with one bookie, and then bet on them not winning (including lose or draw) with another. Whatever happens you will win one and lose the other, typically losing around 20% of the value of your two bets – but since they were free bets you effectively take home free money with no risk! Sites like Fix The Odds will provide you with all the information you need about free bet offers as well as matching odds to find the best hedged bets for you.

Best Low Risk Investments

  • Even in today’s troubled times, government bonds are generally considered to be amongst the lowest risk investments, especially when they come from safer economies such as Germany, or even the USA and UK.
  • Although investing in the stock market will always carry a certain amount of risk, it is possible to minimize this risk. Investing in companies with low volatility which have had a stable share price over an extended period of time, and which pays a dividend to give you a small income, is one way. You can also sell covered calls on the shares which you buy to further minimize your risks – you can learn more from Born To Sell if you don’t know how to do this.
  • Peer to peer lending platforms usually allow you to choose the level of risk you are comfortable with, so you can choose to make a low risk investment with low returns if that is what you are interested in.
  • Bank Savings Accounts don’t give very good returns these days, even if you are willing to tie your money up for years in long term accounts, but they are available with very low risk – especially if you choose a bank which is not currently in major trouble and is likely to be considered ‘too big to fail’.

The post Best Low Risk Investments and No Risk Investments appeared first on Market Curator.


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