10 Best Low Risk High Return Investments In December 2022

10 Best Low Risk High Return Investments In December 2022

10 Best Low Risk High Return Investments In December 2022

If you are looking for financial growth during this time of record high inflation, you should invest your money in high-return investment strategies with reduced risk. 

The Stock Market is going through a bumpy ride. Due to inflation, investors are scared to invest their money, making the market super volatile right now. In this situation, investing money in high-return investments with low-risk returns can be challenging for us to choose. In this article, there are the ten best investment choices that we have listed for you to invest your money, which will provide money over time and long-term investment.

  • High yield Savings account

Savings accounts are an excellent option for high-yield savings. It is not a specific investment option like other investments are, but it gives you a decent return on your cash. Online savings accounts offer higher rates as they don’t have to pay any charges for operating a physical branch.

If you want to save money for an event or a short-term investment, then savings accounts are an excellent option for readily available money.

Putting your money in a savings account comes with security and low risk as they are backed by the government and insured up to $250,000 per account type per bank,  so you know you will get your compensation even if the institution fails.

  • Deposit Certificates

CDs or certificates of deposit are very popular. It is a type of bank account in which you deposit your money into an account for a particular amount of time and get higher interest rates in return. Depending on your account type, the period can range from several weeks to a few years. As the period of your deposit increases, so does your interest rate.

Search online and compare several banks’ offers, as the interest rate varies from bank to bank. If you withdraw your cash from the account before maturation, you will lose your interest rate gained, and some banks may also charge a penalty fee. You can go for a short-term CD which is a no-penalty CD. Short-term CDs allow you to withdraw your money earlier without being charged a penalty fee. 

Seniors, who won’t take many risks, can choose to go for CDs as they are a good option for earning a modest return on your funds while maintaining their long-term security.

  • Money Market Funds

Money market funds are similar to high-yield savings accounts but offer lower interest rates than them. Still, you will get a good return compared to other checking accounts. They offer an easy advantage to people to withdraw their money anytime they want without being charged any penalty fee. 

Money market funds are safe to keep your money in but are not insured by FDIC like other checking or savings accounts. Money market funds are typically sold by brokerage firms and mutual fund companies. They are a good option if you want low-risk and high-yield returns.

  • Series Bonds

Series I bonds are a great way to keep up with increasing inflation. Series I bonds’ interest rate increases as the inflation in the country rises and decreases with the decreasing inflation. So you are guaranteed to get high-interest rates on your bonds when the inflation rate is high.

They are issued for 30 years, but you can redeem them for cash before they mature, although you will be charged with the last three months’ interest rate if you redeem US-based savings bonds before five years. They are a safe place to invest your money and come with minimal risk. In the year 2022, with record high inflation, you will yield high profits from them.

  • Dividend Stocks

People invest their money in a company’s stock, and the company then pays profit to its stakeholders at the end of every year. These profit payments or income are called dividends. You invest in a company and then get paid every year. The amount of dividends paid to a stakeholder is decided by its board of directors, which requires mutual agreement from both sides. You can either keep the cash or reinvest it in the company for a high-profit yield.

They are an excellent option for high-yield investment with low risks, but they are not for everybody. Before investing in a company’s stock, you do your complete research to maintain a familiarity with each company. Go for solid, strong companies that have been in the business for a long time and pay consistent, reliable dividends.

As with all stocks, dividend payments on ordinary shares aren’t guaranteed, so you could lose money if you invest in them. The company experiences financial difficulties and reports a loss.

  • Index Funds

Investing in stocks is a great way to earn high profits, but it is risky. You could lose all your money if the company goes down the hill. You can invest your money in an index fund to eliminate this risk. Index funds allow people to invest in hundreds of reliable companies. It already has a collection of companies to invest your money in.

By investing money in hundreds and thousands of companies, you not only eliminate risk but also earn high dividend rates. If you withdraw your money within three years, then an index fund may not be suitable for you because the longer you keep your money invested, the higher the profits will be.

  • Common Stocks

Common stocks are the type of stocks that the majority of the stakeholders get. Common stocks give certain rights to stakeholders who are not available to preferred stockholders. They get their profit and shares when the company grows rather than receiving regular profit. Over time, investors have gained significant profits from common stocks, which come with a low-risk rate.

Regardless of the platform in which you invest, it is better to choose common stocks from well-established companies that have been around for a long time and have a track record of steady dividend payments.

  • Preferred Stocks

Preferred stocks work like a hybrid combination of both bonds and stocks. Preferred stock pays out monthly cash dividends, just like a bond. In addition to dividends, a buyback could result in the growth of your investment. Regular dividends are paid to preferred stockholders, and in the event of bankruptcy or a merger, they are paid back first.

  • Fixed Annuities

Fixed annuities work like certificate deposits and are often issued by an insurance company. You invest a lump sum of cash into a company and start taking your profit or payout immediately or after your set period. Your money is invested for a set time, and based on that, you get a high-interest rate in return.

Fixed annuities are a good option if you are looking for low-risk and high-return investments. You are guaranteed a high return amount and financial security. You can invest as much money as you want into the account. But you will be charged a penalty fee if you withdraw your cash before its maturation. And if inflation rises, the fixed annuity amount may not seem as attractive as before.

  • Treasury Bonds

Treasury bonds are protected and backed by the US government, so they are a very much safe and reliable source of investments. They provide a higher interest rate than the savings account with a bit of additional risk.

You invest your money into the collection of Us government bonds with a set rate of interest and date of maturity. It can be anywhere from one month to thirty years from the time you invest. You will start to get regular profits as per your interest rate, and you can get hold of your principal when the maturation time comes.

However, if you sell your bonds before maturation, you could lose some of your investment because the rise and fall of stock markets and inflation fluctuate the value of interest rate.

High-Risk Investment

A high-risk investment has either a significant percentage chance of losing money or doing poorly or a  high risk of facing a financial loss.   Nearly everyone would agree that it is dangerous if told there is a 95% chance the investment won’t generate the desired return. Investors need to consider both the risk and the severity of unfavorable outcomes.

Low-Risk Investment

Low-risk investing is less risky because there is less at stake, both in terms of the money spent and the importance of the investment to the portfolio. Additionally, there is little profit to gain regarding possible returns or longer-term benefits.

Low-risk investment entails making sure that none of the possible losses will be severe, in addition to safeguarding against the chance of any loss.

It becomes easier to distinguish between low-risk and high-risk investments if investors accept that investment risk is defined by a loss of capital and underperformance compared to expectations.

How to choose the suitable investments

There are many options in the market where you could invest your money, but they also come with high risks. So you must choose a suitable investment with a high return profit and low-risk rate. Following are the things to consider before choosing an investment:

Investment Strategy Planning

It is essential to set a plan before investing your money. This reminds you of the goals you want to achieve with your investment and prevents you from making emotional decisions that could affect your investment.

Investing money can be emotional. You may feel like changing your investment plan if you see a sudden market change or your portfolio area is not doing well. These events can lead to making quick, emotional decisions, so it’s essential to have a strategy or plan to go through before you make any decision. If you plan to go for long-term investments, such small or sudden changes in the market won’t affect your investment.

Timeline And Risk Tolerance

It is essential to consider your timeline and risk tolerance before you invest. If you are looking for a short-term investment, then the money to be invested should be in an accessible, safe, and secure environment and less risky.

If you want to go for long-term investments, taking high risks and investing in different options can give you a high return profit.

Market Research

It is essential to take a survey of the market to see how things work in actual life. Study the impacts different factors can make on your investments so you will be able to make quick decisions. Research about different ongoing investment trends within your country and globally too.

Maintaining Emergency Fund

It will be a wise move to save money in a savings account to help you cover any emergency event. 

Stay Alert

Be alert to fraud and scammers. Read news and headlines often to know if any scam or fraud is happening in the investment sector so you can get an alert. Before investing your money, make sure you complete all the paperwork and are aware of all the terms and conditions of the company. You and the company should be on the same page before you deposit your money into their accounts. Always take time and discuss with someone who has professional knowledge about this.

Amount Of Money You have

Before choosing to go for an investment plan, consider the amount of money or budget that you have for the plan. Some investment plans require a minimum balance or initial cash, and some companies can customize a package depending on your budget. So it is essential to explore all the options before starting your investment.


As inflation is on the rise, there are a lot of options to invest your money with a high return rate and low risks. Do your research before investing your hard-earned money into something because there are many factors that you should consider before investing somewhere. It is also important to complete your research and explore the market.

Having saved money with high returns is essential because you never know when you will need it. Money market funds, high yield savings accounts, fixed annuities, etc., are some of the great options with high return and low-risk investments.

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