5 Low-Risk Investments That Build Real Wealth

So you want to invest but not risk losing all the money you’ve worked so hard to earn? Well, investing does come with its risks but fortunately there exists certain assets that allow you to have your cake and eat it too by combining lower risk levels with moderate returns which I want to share with you now but before I get into the types of investment that have low risk, I want to briefly discuss what risks you face when investing.

Investment risk is the likelihood that losses will occur relative to the expected profit from any investment. That simply means that investment risk is the measurement of the uncertainty that exists with each investment.

Generally, investments that have high risk have the potential to pay more interest while investments with low risk have the potential to pay lesser interest. Some common risks include market risk, interest risk, liquidity risk, concentration risk, and inflation risk among many others.

Market risk is the risk that exists because of events that take place and affect the entire market. For example, government policies can affect the market either positively or negatively. When such happens, the value of your investment can either become high or low.

Another type of risk that exists is the interest rate risk. This is the potential for an investment…