10 Best Low-Risk Investments in 2024

Investing in the stock market can be a risky endeavor, especially during times of economic uncertainty.

While inflation rates may be decreasing and the Federal Reserve is expected to stop tightening, the possibility of a recession still looms.

To mitigate risk, investors may consider building a portfolio that includes less-risky assets.

However, with lower risk exposure comes the potential for lower returns over the long term.

For those seeking growth, it may be more beneficial to consider investing strategies that align with their long-term goals.

Even higher-risk investments such as stocks may have segments, such as dividend stocks, that offer attractive long-term returns while reducing relative risk.

What to Consider

When it comes to investing, the amount of risk you are willing to take is an important factor to consider. There are two main scenarios to consider: no risk and some risk.

If you opt for no risk, you will never lose any of your principal investment.

However, low-risk investments typically offer lower returns compared to higher-risk investments.

Additionally, inflation can decrease the purchasing power of money invested in low-risk options.

On the other hand, some risk investments may result in breaking even or incurring a small loss over time. However, these investments typically offer higher returns than low-risk options.

Higher-risk investments are more suitable for long-term goals, while low-risk investments are better for short-term investments or emergency funds.

It is important to keep in mind that opting for only low-risk investments may result in losing purchasing power over time.

Therefore, it is essential to find a qualified financial advisor who can guide you through the investment process and help you achieve your financial goals.

Here are the top low-risk investments for 2024:

  • High-yield savings accounts
  • Money market funds
  • Short-term certificates of deposit
  • Series I savings bonds
  • Treasury bills, notes, bonds, and TIPS
  • Corporate bonds
  • Dividend-paying stocks
  • Preferred stocks
  • Money market accounts
  • Fixed annuities

These low-risk investment options provide a stable return on investment without exposing investors to significant risks.

It is important to note that the returns on these investments may vary based on market conditions and individual circumstances.

Investors should consult with a financial advisor before making any investment decisions.

Best Low-Risk Investments in 2024

Investors who prioritize safety over high returns often look for low-risk investments.

While there are no guarantees in investing, there are several options that offer relatively low risk. Here are the top 10 low-risk investments for 2024:

1. High-Yield Savings Accounts

High-yield savings accounts are a safe option for investors who want to earn a modest return on their money.

These accounts are insured by the government and offer yields that are higher than traditional savings accounts. By shopping around, investors can find the highest-yielding options.

Why Invest: High-yield savings accounts are completely safe, as investors will never lose money.

Additionally, most accounts are insured up to $250,000 per account type per bank, so investors will be compensated even if the financial institution fails.

Risk: While cash doesn’t lose dollar value, inflation can erode its purchasing power.

2. Money Market Funds

Money market funds are pools of low-risk investments such as CDs and short-term bonds, and are typically sold by brokerage firms and mutual fund companies. These funds offer diversification and liquidity.

Why Invest: Unlike CDs, money market funds are liquid, which means investors can take out their funds at any time without being penalized.

Risk: Money market funds are generally safe, but investors should be aware of interest rate risk. Additionally, the value per share of these funds can fluctuate.

3. Short-Term Certificates of Deposit

Short-term CDs are a safe option for investors who want to earn a fixed rate of interest. Investors can find the best rates by shopping around online.

Short-term CDs are loss-proof in an FDIC-backed account, unless investors take the money out early.

Why Invest: If investors leave the CD intact until the term ends, the bank promises to pay a set rate of interest over the specified term.

Risk: If investors remove funds from a CD early, they will typically lose some of the interest earned. Additionally, if investors lock themselves into a longer-term CD and overall rates rise, they will be earning a lower yield.

4. Series I Savings Bonds

Series I savings bonds are a low-risk bond that adjusts for inflation, helping protect investors’ investment.

When inflation rises, the bond’s interest rate is adjusted upward. But when inflation falls, the bond’s payment falls as well.

Series I bonds can be purchased from TreasuryDirect.gov, which is operated by the U.S. Department of the Treasury.

Why Invest: The Series I bond adjusts its payment semi-annually depending on the inflation rate. With high inflation levels, the bond is paying out a sizable yield. That will adjust higher if inflation continues to rise, too. So the bond helps protect investors’ investment against the ravages of increasing prices.

Risk: Savings bonds are backed by the U.S. government, so they’re considered about as safe as an investment comes. However, don’t forget that the bond’s interest payment will fall if and when inflation settles back down.

5. Treasury Bills, Notes, Bonds and TIPS

The U.S. Treasury issues Treasury bills, Treasury notes, Treasury bonds, and Treasury inflation-protected securities (TIPS). These are highly liquid securities that can be bought and sold either directly or through mutual funds.

Why Invest: All of these securities are highly liquid, and investors can buy and sell them easily.

Risk: If investors keep Treasurys until they mature, they generally won’t lose any money, unless they buy a negative-yielding bond.

If they sell them sooner than maturity, they could lose some of their principal, since the value will fluctuate as interest rates rise and fall.

6. Corporate Bonds

Corporate bonds are issued by companies and can range from relatively low-risk to very risky. Investors can mitigate risk by selecting bonds that mature in the next few years.

Longer-term bonds are more sensitive to changes in interest rates. To lower default risk, investors can select high-quality bonds from large, reputable companies, or buy funds that invest in a diversified portfolio of these bonds.

Why Invest: Corporate bonds offer higher yields than government bonds, and are generally considered lower risk than stocks.

Risk: Bond values can fluctuate as interest rates change, and the company could fail to make good on its promise to make the interest and principal payments, potentially leaving investors with nothing on the investment.

7. Dividend-paying stocks

Dividend-paying stocks are considered to be a lower-risk investment option compared to high-growth stocks.

This is because they pay cash dividends, which can help limit their volatility. However, it’s important to note that dividend-paying stocks can still fluctuate with the market.

Investors who are interested in dividend-paying stocks should look for stable and mature companies that offer the dividend, as well as the possibility of stock-price appreciation. By doing so, investors can reduce the risk of losing their money.

8. Preferred stocks

Preferred stocks are more like lower-grade bonds than common stocks. They make a regular cash payout, similar to a bond.

However, companies that issue preferred stock may be able to suspend the dividend in some circumstances, which can lead to fluctuations in value if the market falls or interest rates rise.

Investors who are interested in preferred stocks should be aware of the risks associated with this type of investment.

It’s important to research the company issuing the preferred stock and understand the terms of the investment before making a decision.

9. Money market accounts

Money market accounts are low-risk investments that are typically sold by brokerage firms and mutual fund companies.

They are pools of CDs, short-term bonds, and other low-risk investments grouped together to diversify risk.

One of the benefits of money market accounts is that they are liquid, which means investors can typically take out their funds at any time without being penalized.

However, investors should be aware that money market accounts usually have lower yields compared to other types of investments.

10. Fixed annuities

Fixed annuities are a type of insurance product that can provide a steady stream of income over a set period of time.

They are considered to be a low-risk investment because they offer a guaranteed rate of return.

Fixed annuities can be a good option for investors who are looking for a steady stream of income in retirement.


In conclusion, low-risk investments are a great way to earn a steady income without having to worry too much about market volatility.

By diversifying your portfolio with a mix of bonds, CDs, and money market funds, you can ensure that your money is safe while still earning a reasonable return.

Remember to always do your research and consult with a financial advisor before making any investment decisions. With the right strategy, you can achieve your financial goals and secure your future.

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