How to invest low risk? Any ideas? If so what would be the percentage rate annual?
2007-03-11 17:19:32 · 4 answers · asked by klp_dog 2 in Business & Finance ➔ Investing
SPY- Spyders S&P 500 fund (11-12% annually)
DIA- Diamonds Dow Jones Industrial average fund (11-14%)
American Growth fund and Capital Growth fund are wonderfull mutual funds as well that you can expect to yield around 12-13% a year with. You can start out with as little as $250 too.
Whatever you do... Dont just stick it in a bank account, unless you put it in a CD. INVEST IT!!!
2007-03-11 18:39:57 · answer #1 · answered by dkwr14 3 · 1⤊ 0⤋
In general there is a relationship in investing between risk and return. You can be almost certain nothing will happen to money you place into a bank account but you'll get a lously interest rate. At the other extreme stock options can easily triple or lose 95% of their value in a day.
In general I'd recommend investing in mutual funds as a good balance between risk and return over the long term. The stock market tends to go up about 10% a year, and while stocks can go down, if you invest in mutual funds you're very unlikely to lose your investment. The easiest way to invest is to open a brokerage account (scottrade, tradeking, etc) and buy what are called exchange traded funds. These are a type of mutual fund that are traded on stock exchanges like stocks and allow you to own a little stock in a lot of different companies easily. Two examples are the SPDR fund (SPY) and the iShares fund (IVV).
2007-03-12 01:22:46 · answer #2 · answered by Adam J 6 · 1⤊ 0⤋
I agree with the above post. It will depend on your risk profile and if you are willing to take some risks.
Unfortunately a lot of people do not have enough knowledge of the investment products on offer and hence unable to make the right decision. They are so terrified of hearing all those horror stories about people losing all their money and hence do not venture to take any kind of risk, thus losing out on the opportunity of making a good return on their investments.
What they do not realize is that the high cost of living and inflation makes it a necessity to invest where you should get a higher return. You need to step out of that shell of comfort and take small risks.
Maybe you can diversify your portfolio, with larger amount in fixed investment options and the other half in options which give higher return.
Most Cd's and bonds give you safety of funds but their returns are lousy at about 5-7%. However, there are other options which are safe and give higher returns. You have to accept some risks at some time in your life, maybe this is the time to start.
Buzz me if you are seariching for good alternatives. I can give you options for both, fixed returns and slightly riskier investment options.
Regards
2007-03-12 01:48:43 · answer #3 · answered by fx_invest74 2 · 0⤊ 0⤋
CONTACT ME YOU CAN GET 127 PERCENT RETURN ON THAT. I INVEST IN REAL ESTATE
2007-03-12 15:22:47 · answer #4 · answered by investor 2 · 0⤊ 0⤋