While some go for profits, investors also always wish to invest in safer instruments. That is a way of protecting losses as well. Earning substantial profits from certain investments usually involves corresponding risks. In dire economic times and uncertainty however, the risks also increase considerably. With higher risks involved, investors would consider putting their money on safer financial instruments instead. Here are some of the safer investments options available.
Certificates Of Deposit
Putting money on Certificates of Deposit or CD’s is one of the safest ways to invest your money during dire economic periods. Similar to a savings account, CD’s will also pay interest on money deposited in the account. The main difference is that a CD may require account holders to keep the money deposited in the account for a specified period of time. If you wish to take advantage investing in CD’s, just make sure that you have no plans on withdrawing it before the specified time period.
Government Savings Bonds
Savings bonds are usually considered as safe investments. They are low risk investment instruments backed by the government. It is because of this backing that savings bonds almost guarantee that investors lose no money when investing in them. But in terms of earnings, they usually don’t earn that much. But when it is a safe investment you are looking for, consider putting money on savings bonds.
Money Market Funds
The money market is where people buy and sell money as the primary commodity. Money market funds are mutual funds that mainly engage in the money market. They can be similar to stock markets. In money market funds, a portion of the earnings are usually being paid in the form of dividends. Although they are not as safe as savings bonds or CD’s, they may also be considered as an alternative means to invest your money in safely since they are known to protect the principal investment value.