If you are an investor and are at the starting stage, you may be looking for the safe investment options. There are certain ways through which you can put your money on the line while keeping the risk low. It will provide you a respectable return. The following are certain low risk investment options for you.
Peer to peer lending
P2P lending is something that many people have started doing over the last decade. It is one of the short term investments that can yield pretty quick results. Rather than buying some shares in a company, you will lend your money to an individual hoping that he will pay you back with some profit. There are some online platforms such as lending club where you can lend your money. However, you should be careful in selecting the candidates. The default rate is just over 5%, and if you can screen properly, you have a good chance of making decent money.
High-interest saving account
If you think about making some money on your own, without much of hassle, you can try the high-interest saving accounts. It is a way through which you earn a nominal interest on the money you keep in your account. All you need to do is open a saving account that can return you high interest and deposit some cash in that account. Then you have to wait for a particular period before you get the interest on your deposit.
Credit card rewards
The credit card rewards maybe not what many people prefer. However, it can be a great way to have some money back. The cash back credit card helps you in earning the points that you can translate into some real bucks after reaching a certain level. The certificate of deposit and online saving account might be good alternatives. However, the lucrative rewards you earn through cash back credit card are far more than what you get from these alternative options.
Dividend paying stocks and mutual funds
Another easy but a bit risky way to make money is through investing in the dividend paying stocks and mutual funds. If you have a stock that has no dividend and another on the side which provides 5% dividends each year, you can make the latter stock your pick.
The preferred stock is another option which you can consider. There is an equity portion in preferred stock along with a debt part. It is between bond payments and dividends of the stock. They are not as common as the general stock trading but are less risky than that too.
So, these are some safe investment options in which the risk is pretty low, and you get to have a good return on your money. In case that you are not satisfied with what is told above, try forex trading. It is becoming increasingly popular as it provides you a chance to make some serious money. However, as the preferred stocks, there is some risk in this type of investment too.