Those looking for low risk investments want to extend the protection of their portfolio.
And when it comes to low risk, it is natural that Florida tax certificates will soon come to mind.
Check out the ‘Low Risk Investing Florida Certificates’ book about this method of low risk investment. Check out auther website of this book and its YouTube presentation. This book is written to offer fundamental information about getting a good return using Florida tax certificates.
But whether you’re a financial market veteran or someone who is just getting started in this universe, it’s worth considering other low risk investment options.
Savings have worse returns and security equivalent to other products that may be part of your portfolio.
And if you want to know details about them, read on!
What is a low risk investment? Concept and meaning
To begin with, it is worth understanding that there are no totally risk free investments.
What you will find on the market are very small risky applications whose chances of losing money are backed by unlikely events such as the bankruptcy of the country, which applies to government bonds, for example.
Even the preferred savings present risks.
Still, the risk exists – and it recurs in different applications.
For an investment to be considered as low risk, it is critical that the product be conservative and includes some aspects, including:
- Low risk of devaluation and default (losing value or not being paid as agreed)
- Good liquidity (redemption facility)
- Low incidence of fees, such as administration fees.
- If the investment you review meets these requirements, it is likely to be as safe as the savings.
But it is worth checking the guarantee of the money applied.