What Safe Investments Are There This Year? Ask the Experts Comparethefinancialmarkets.com
As the economy in the UK and in most other parts of the world is still far from great, and even commodities like gold that have generally performed well seem to be ‘unwell’, it might seem that there are no safe investments out there anymore. But things are not that bad for investors: there are still plenty of possibilities on the financial markets.
So, What’s Safe This Year?
Stock markets don’t seem to be too safe now, and many investors tend to avoid putting large sums in them. That said, emerging biotechnology and renewable energy companies represent promising long-term investments for those who are willing to take some risks.
Bonds, probably the world’s most popular type of investment, might not be as profitable as they used to be a few years ago, but the returns are still predictable and the principal still always gets repaid, and that makes them a solid foundation for any investment. The returns are low though, it’s true. Expect 2% annual returns for a 10-year bond.
Savings accounts are safe as well, but they tend to tie your money, making it unavailable for other investments. Just as with bonds, the returns have generally decreased in recent years, but there are still many offshore savings accounts that can look exciting for British investors. While you think about investing in savings accounts, you might want to consider certificates of deposit as well.
Precious metals, in particular gold, have generally been safe investments. Gold as a commodity has had a rough ride in the last 24 months, but the fact is that gold is intrinsically valuable, and even if its price fluctuates more than usual nowadays, it remains one of the safest investments out there.
Other safe investments this year include those in exchange traded funds, mutual funds investing in commodities and futures, and established private businesses.