Safe Investment Options

Most of the people interested in investing their money in market pose this question, “which one is the safest and best option for investment?” Normally, and obviously everyone intends to formulate a perfect investment strategy in order to invest in different classes from which maximum return is possible, although the loosely defined term of maximum returns has different meaning depending upon everyone’s perspective. Everyone is expecting a return that is higher than the fixed return rate available in the market.  For instance, when you are comparing the return rate of all the financial instruments available and operating fully, with the fixed rate of return (8%) annually, then any investment that is offering more than 8% returns is regarded as the best investment.


That being said, it cannot be clearly answered about the safe investment option. The two factors on which a safe option depends are the general market conditions and your personal financial situation. We formulate an exemplary case here to build your understanding. Suppose one has $10,00,000 in one’s account and one wants to invest. The important factor that has then to be taken care of is the time horizon, i.e. the time period when one aims to get one’s amount back with return. Bearing that in mind, one must decide the safe investment option that should match the investment horizon. An example for that could be that one needs the returns back in 10 years for one’s son’s university education. Therefore, the chosen safe investment option would then be a long-term option.


Second important that one needs to take care of is the risk; how much risk is one going to take on one’s investment. When one has $1,000,000 in one’s account, then 10% of that money can be at risk of being lost, whereas 90% of it should be safe. So, the person must invest 10% of money in stock market, and the rest in banks.


Third factor to consider when one is looking for the safe investments options is the rate of return. If one is gaining maximum satisfaction with the fixed rates of return offered by different financial institutions, then those investment instruments should be given higher priority, as fixed returns will be gained in any case. In the converse case, one will have to seek for the other investment options that are giving higher rates of return. But the risks are attached with most of the investment options; therefore, the safe investment options will then be selected to avoid risks.


The above-mentioned case thus directs you to the point that the right and safe investment options can only be selected and implemented if you have done a thorough and suitable financial planning. Achieving the best possible financial goals would then be the main indicator that you have made the right investment options that will safely land you in the heaven of financial gains where no losses or debts are prevalent as in the case where proper financial investment planning is not taken care of.

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