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Ten Of the Safest Investment Opportunities in 2024 and Why You Should Invest in Them

The most significant benefit of investing is securing wealth in the future while taking you out of a financial struggle, earning extra income, and helping you reach your financial targets.

The safest investment opportunities for beginners

Everybody is searching for the safest investment opportunities for beginners or advanced investors in 2024. If it promises low-risk with a high return, then you are sure of getting a ton of people interested in it.

Over the years, experts have preached how important it is to invest capital, and not just save it in the bank, “let your more work for you.” One of the fundamental keys to having financial freedom is investing early to truly enjoy life in the future. While many economies struggle under the effects of coronavirus, with many people struggling to find the next paycheck for survival, investors are using the rise and fall markets to their advantage. 

The most significant benefit of investing is securing wealth in the future while taking you out of a financial struggle, earning extra income, and helping you reach your financial targets. You may have money at your disposal, and you don’t know what to do with it; the best move is to let it work for you. While there are many positives and great rewards with investment, it comes with an incredible amount of risk that requires evaluation before commitment. Here are the best low-risk investment opportunities to consider in 2024.

1. High-Yield Savings

When you have a savings account with a brickback, your cash balance generally earns interest at a reasonably low rate. However, a high-yield online savings account offers a higher interest-earning rate, and lower overhead costs while remaining accessible. Although the bank exists online, you still have access to your money through ATMs and traditional banking transfer systems.

High-yield savings are arguably one of the best investment opportunities for beginners in 2024 and beyond. It doesn’t matter whether you are in Canada, Australia, the United States, or the UK, it works across borders.

A savings account primarily gives you convenient access to your cash when you need it with little hassle. This is why a high-yield savings account is the best for investors who enjoy the security of their money and access it in the short term. This type of investment is as liquid as capital gets and is considered one of the most secure.   

2. Certificates of Deposit

Why certificate of deposit is one of the safest investment opportunities in Canada

One of the best ways to earn high interest through a bank is through certificates of deposits. This type of account is similar to a savings account; however, accessibility to it takes significantly longer and usually has a stipulated time frame to it. For as long as a year, this time deposit has a penalty should you withdraw before its maturity date. 

The most significant advantage of a CD account is that banks pay you high-interest rates in intervals. Compared to a high-yield savings account, CDs may have less liquidity, easily affected by market fluctuation; however, the earnings can get quite handsome.

The interesting thing about how certificates of deposit work is that you are at liberty to close the CD account with the bank when it matures.

The typical interest rate of a certificate of deposit account depends on the bank or credit union involved and the maturation period.

3. Government Bond Funds

Another type of mutual fund, or EFTs, is a government bond fund, which invests in debt securities. Usually sponsored by government agencies, security debt instruments include mortgage-backed securities, T-bonds, T-notes, and T-bills, which are best suited for risk-averse investors. Like the best ETFs in Canada, investing in government debt instruments protects your investment; however, it may be affected by inflation and interest rate fluctuation.

This carefully hand-picked investment option may not pay you a huge interest rate but it’s better than leaving your money idle in the bank. Governments use them to raise funds that can be spent on new projects or infrastructure.

How do you buy government bond funds? When the Canadian, UK, Australian, or U.S. government wants to issue bonds, they usually do so through a bond auction, where the bond will be bought by large banks or financial institutions. These financial institutions will then go ahead to sell it to individual investors, other smaller banks, and pension funds. 

It’s through the companies that bought during the bond auction that private individuals can now buy from.

4. Short-Term Corporate Bonds

One of the best ways to raise capital, corporations sell bonds to interested investors for packages called bond funds on a short-term basis. 

Considered a low-risk investment, corporate bond funds are best for investors looking to lower their portfolio risk, for example, retirees who are still looking to earn returns compared to investing in government bonds. 

Like any other investment, the potential to lose capital is there; however, short-term corporate bonds allow the buying and selling of shares at any given time.

The difference between short-term corporate bonds and government bonds is that you have the liberty to sell your shares bought in a corporate bond but you can’t sell your government bonds like treasury bills.

5. Municipal Bonds As One of the Safest Investment Opportunities

Apart from complete liquidity, municipal bonds or munis offer tax-free earned interest rates for investors. 

Being one of the safest investment opportunities with a high return, this is a massive benefit for many investors, and it allows different investment bonds issued by the local or state government.  

With a diversified exposure for investors, munis are best for beginners who have little to no experience analyzing bonds; this bond is beneficial to investors in high tax brackets or who live in high tax states.

The similarity between treasury bonds and municipal bonds is that both of them are tax-free. The difference between corporate bonds and municipal bonds is that municipal bonds pay lower interest rates but are tax-free whereas corporate bonds offer higher returns but you will pay a tax on your interest.

6. S&P 500 Index

S and P 500 Price Real-time Quote News Google Finance
S&P 500 Price Real-time Quote News Google Finance

As technology and the internet grow, more innovations and software upgrades come into the space of investment. Investment platforms like the S & P 500 index are challenging the traditional way of banking and investment. With hundreds of successful companies available on the Index, investing is more diverse, and diversity brings a great deal of volatility to the market.

With powerhouse brand names like Amazon and Coca-Cola, you can rest assured your investment is entirely secure. S&P 500 is as liquid as funds can be, allowing any time for buying and selling, provided the market is open for business.  

7. Dividend Stocks

Become a shareholder in one of the world’s biggest companies that are publicly traded. As an intermediate or advanced investor, earn dividends by purchasing several companies’ shares in the market and protect your investment by grouping them in a stock fund. 

Dividends are usually paid out quarterly or half-yearly, making this type of investment a better option for investors looking to get an income out of their investment. When investing in a dividend stock, company reputation is everything, so consider a company with consistent dividend increases instead of a company with inconsistent high yields.    

8. Nasdaq-100 Index

Nasdaq-100 index is a fund listing the top 100 tech companies in the world. Investors barely need to run an extensive analysis to determine the best company to invest in. 

Companies in the top 100 in the tech market can only mean protected investments and profits; it doesn’t get more stable than this. Apart from having stable companies on the platform, to further protect your investment, Nasdaq-100 offers diversification and volatility. 

Provided the market is open, investors can convert their investments anywhere, anytime. The easiest way to invest in the Nasdaq Composite Index is to buy an index fund, which is a mutual fund or ETF that passively tracks the index.  

9. Cryptocurrency

Although banks cannot be eradicated, in the last few years, cryptocurrency has drastically influenced the financial industry in the way uber affected transport and Airbnb affected accommodation. With Bitcoin leading the crypto world, acting as a medium of exchange, the currency’s actual value is determined by the demand of traders. 

With no government FDIC involvement, the risk factor of this investment is extremely high, perfect for risk-seeking investors. Digital currency is highly volatile, with liquid online transactions, pretty much around the clock. The most significant risk for digital currency is that traders may fall victim to profile theft and hacking, a massive threat to your investment.

There might also be a case of a pump-and-dump scam where an influencer inflates the value of the digital currency for his own selfish interest, thereby making people rush into it while he resells and walks away. 

Is pump and dump illegal? Yes. It’s a punishable offense. It was in the light of this evidence that John McAfee was jailed in Spain of which he later died in their custody.

You can begin your journey into cryptocurrency investment by learning how to buy Bitcoin and secure it without getting defrauded.

10. Home Renting As One of the Safest Investment Opportunities

Home renting is the best investment option with high returns

Home renting is an interesting income-generating asset if your property is in a highly dense area. Being an immovable asset, it’s one of the safest investment opportunities in Canada, the UK, the United States, Singapore, and other parts of the globe.

The effects of the current pandemic worldwide have plunged the real estate industry, with many people losing their jobs and tenants being forced to move out. However, for those who are lucky enough to have buying power, interest rates have hit an all-time low, and now is the time to buy. Economies will recover, skilled unemployed people will be employed, and they will need to rent homes again. 

Property investment in places like Dubai, the UK, Canada, Australia, and the United States has always been an excellent investment, and that is not changing any time soon. 

Which of these safest investment opportunities are you considering investing in today? What has been your experience in the last 6 months if you are not new in the investment game?

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Emenike Emmanuel is a multiple award-winning blogger, CEO of Entrepreneur Business Blog, Chief Evangelist of Ebusinessroom Ventures, and the Lead Coach of an online community of over 12,000 business owners called, The Excellent Entrepreneurs' Network. He’s here to help you start, manage and grow a profitable and sustainable business using digital marketing strategies. Follow him on Facebook, Twitter, Instagram, LinkedIn & Pinterest with this handle, @emenikeng. Telegram group - t.me/yourfirst1000 | Email: [email protected]