Low Risk Investments

Onlineshares Quote Line

0845 108 0505

• Home
• Mortgages
• Investments
• Banking
• Savings
• Pensions
• Car Finance

Low Risk Investments

This will concentrate on the basic information about investments that do not involve any risk of losing your original investment. However, you should bear in mind that most of them are vulnerable to the impact of inflation.

This is particularly the case if you are using these investments to provide an income, because the amount of your capital stays the same in money terms but gets progressively smaller in terms of what you can buy with it.

If you reinvest the interest earned, not only is your capital growing by the reinvested amount, but you earn interest on the reinvested interest (a process called 'compounding'), which further boosts the value of your investment.

However, should you let the interest accumulate, the return on these investments might still fall short of inflation, and, over the long term, generally lags behind returns available elsewhere. This makes them unsuitable as the only home for long-term saving, although they might form part of a more widely invested portfolio.

Balancing the risks, each product has been given a risk rating on a one (lowest risk) to ten (highest risk) scale, which should help you.

Back to advice >>