Which investment is the lowest risk?

When we invest there is always the risk of losing our money. But which investment is the lowest risk?

The safest investment for a person looks different for another. It might be a low-risk mutual fund, a government bond, or even an account that’s guaranteed by a third party.

You might also want to review the criteria for the other three types of accounts.

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In deciding which type of account is best for you, consider:

Your savings goals.

The risk you can afford.

Your need for liquidity.

Your investment time horizon.

The type of account may also depend on the size of your balance and your age.

Finding out which investment is the lowest risk can be difficult because it changes depending on your financial situation and your goals in life. Generally, risk-free investments are cash and government bonds.Bank deposits (which don’t incur any interest) are among the safest ways to invest your money because it is considered a risk-free investment due to its legal backing and low rate of default.

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