Where to invest your money if you don’t want to take risks


At this point in the movie we will not convince you of the benefits of compound interest. If you want to see your money grow, you know that saving is not enough, you should invest . And if you have reached this article you are surely interested in taking your first steps as an investor, but you are afraid of losing your money and do not know where to invest.

You do not have to worry. Although in the long term it is practically that an investment throws losses, if you have a conservative profile and do not want to assume more risks than necessary, these are the financial products in which you can invest your savings . Six investment options for risk allergy sufferers

Bank deposits

Bank deposits

If what you are looking for is liquidity and you do not mind losing purchasing power with respect to inflation, bank deposits are a great option to invest your savings without risk . Its main advantage is that you will know in advance the profitability that you will obtain (which we already warn you that it will be very, very small). In addition, capital is insured up to 100,000 euros so they are a great option to invest.

Investment funds

money cash

Since bank deposits stopped offering interesting returns, investment funds have become the most demanded financial product by investors who do not want to take risks . With a well-diversified fund and in which fixed income predominates, the chances of losing money are virtually non-existent.

An indexed fund is a type of passive management investment fund that replicates the behavior of a given index or market . For example, a fund indexed with IBEX 35 will try to replicate the behavior of this index. Thus, if the IBEX rises, so will the fund. Similarly, if the index suffers a fall, it will move to the bottom. During the years of crisis, the PIAS gained many followers among conservative investors. This is an investment product that many insurance companies usually offer but, like deposits, offer a very low return and even lower than inflation. Its main advantages are that they allow periodic contributions (for example, monthly) and that capital is also guaranteed.

Public debt

money loan

Public debt is also a fairly safe product, since it is practically impossible for a country to break and end up declaring a default or default on its debt . Depending on the investment term we want, in Spain the main public debt securities are bonds, treasury bills and treasury bonds. Shares of companies that distribute dividends. One of our preferred options to invest with low risk is to buy shares of companies established in the market and that dividends are distributed every year among its shareholders. No startups or start-up companies. We will look for boring companies but that assure us that they will end the year with a good income statement.