When most people think of low risk investments, they tend to choose from the following:
Bank savings accounts
Money market accounts
Fixed income bonds
Blue chip stocks
There are however, other low risk investments to consider that, in terms of long term capital growth potential can yield far higher returns with low risk.
A high yield on an investment does not necessarily mean taking a high risk. Let's look at the options and analyze the risk / reward:
Bank Deposits, Money Market, Fixed Income, Savings Accounts
These represent probably the lowest risk investments you can have, and their return reflects this. Your money is safe, but you are unlikely to get rich quick and your capital may not even keep pace with inflation.
The fact is that most asset management by professional advisors is poor over the longer term, and is unlikely to be above the 10% level and will probably be substantially lower.
Blue Chip Stocks
With the performance of fund managers being poor, many investors simply try to make their capital grow by picking blue chip stocks and holding them for the long term. Again, performance of this buy and long-term hold strategy normally produces poor long-term growth.
What Returns can You Expect with Low Risk Investments?
You already know you are not going to get rich quick (and neither should you expect to) but wouldn't you like a low risk investment that produces double-digit capital growth?
Furthermore, wouldn't you like an investment that unlike the stock market has shown better capital gains longer term with lower volatility? Well, if you are considering low risk investments consider the following:
UK Land - Low Risk and High Rewards
Land can be considered a low risk investment and remains one of the major secrets of the world's wealthiest investors.
Donald Trump and Howard Hughes are just two investors that have made billions in this area. In fact, many of the world's wealthiest investors have become rich from land investments.
The Facts about UK Land Growth
In the last 20 years UK average land values have increased by nearly 1,000% and growth in the last year exceeded 30%!
Now consider this is the average growth, with careful selection of land plots capital gains achieved by astute investors have been much higher.
Why You Should Invest in Land
Unlike equities, the capital growth of land investments is attractive and so is the downside risk:
There have been no major losing periods
Growth is consistent
Low downside volatility
UK land looks set to appreciate further as the population continues to expand rapidly and house building continues at a rapid rate.
At one time land investment was just for the wealthy. Today, there are a number of companies helping smaller investors select plots of land to buy, and investments typically start at about $10,000.
Your Options with Low Risk Investments
If you invest your money, you want to have a spread of different asset classes to reduce risk and increase rewards.
For most investors this means money market, bank deposits, and savings accounts, fixed income bonds for security and mutual funds and equity investments for growth.
It may be prudent for many investors to diversify some their investments in mutual funds into land and take advantage of higher growth rates and lower volatility.
To find out more about land as a low risk investment and to receive your free info pack please visit our web site:
For more information, please visit: High Yield Money Market