Investors are always on the lookout for high return investments that will secure their financial future. But with so many options available, it can be difficult to know where to start. If you're risk-averse or looking to protect principal, there are safe investment options available. Here are some of the best high return investments to consider.
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Certificates of Deposit (CDs)
CDs are a type of savings account that offer a fixed interest rate over a set period of time. They are FDIC-insured, which means your money is protected up to $250,000 per account. CDs are a safe investment option for those who want to protect their principal while earning a higher interest rate than a traditional savings account.
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U.S. Treasury Bonds
Treasury bonds are issued by the U.S. government and are considered one of the safest investments available. They offer a fixed interest rate and are backed by the full faith and credit of the U.S. government. Treasury bonds are a good option for those who want a low-risk investment with a guaranteed return.
High-Yield Savings Accounts
High-yield savings accounts offer a higher interest rate than traditional savings accounts, but they typically require a higher minimum balance. They are FDIC-insured, which means your money is protected up to $250,000 per account. High-yield savings accounts are a good option for those who want a safe investment with a higher return than a traditional savings account.
Mutual Funds
Mutual funds are a type of investment that pools money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities. They offer professional management and diversification, which can help reduce risk. Our listing of the best mutual funds sticks to U.S. and international equity funds, plus one allocation fund and one short-term bond fund.
Real Estate Investment Trusts (REITs)
REITs are a type of investment that allow investors to buy shares in a portfolio of income-producing real estate properties. They offer diversification and the potential for high returns, but they also come with risk, including market fluctuations and interest rate changes.
Exchange-Traded Funds (ETFs)
ETFs are similar to mutual funds in that they offer diversification, but they trade like stocks on an exchange. They are a good option for those who want to invest in a specific sector, such as technology or healthcare, or for those who want to invest in a specific geographic region, such as Europe or Asia.
Stocks
Investing in individual stocks can be risk, but it can also be highly rewarding. Investors frequently compare real estate and stock investing in terms of their returns. According to a Gallup poll published in May, Americans think investing in stocks is the best long-term investment option. Southwestern Energy, Mirati Therapeutics, and First Solar are top US stocks in the Russell 3000 in June 2023 for value, growth, and momentum.
Bonds
Bonds are a type of investment that offer a fixed interest rate over a set period of time. They are generally considered less risk than stocks, but they also offer a lower potential return. Bonds are a good option for those who want a safe investment with a predictable return.
Money Market Funds
Money market funds are a type of mutual fund that invest in short-term, low-risk securities, such as Treasury bills and certificates of deposit. They offer a higher return than a traditional savings account, but they also come with some risk.
Annuities
Annuities are a type of insurance product that offer a guaranteed income stream in retirement. They are a good option for those who want a guaranteed income in retirement, but they also come with some risk, including fees and surrender charges.
When considering investment options, you should weigh the potential returns and the risk involved. Check out these safe investment options if you're risk-averse or looking to protect principal. Looking for the top mutual funds? These are the best U.S. equity stock funds based on their five-year performance. This is where to safely keep the cash you'll need within five years. If you're looking to invest money for the short term, you're probably searching for a safe place to put your cash so it's there when you need it. One of the best ways to secure your financial future is to invest, and one of the best ways to invest is over the long term.
