At A Time Of Uncertainty, What Are The Safest Ways To Invest?
2020 has certainly started out on a very different note than many of us had expected, but, for the most part, we are making the best of it. Still, the economic uncertainty has left many investors concerned over what they should, and shouldn’t, be investing their money in.
Keeping that in mind, we are going to take a look at some of the safest ways to invest in April 2020. From high-yield savings accounts, certificates of deposit and money market funds, to corporate bonds, dividend-paying stocks and more, let’s get started:
Safest Ways To Invest In April 2020
High-Yield Savings Accounts- although savings accounts are not technically an investment, they do offer a modest return on your money. Many savings accounts are available with at least a 1.7 percent yield, and the deposits can be automated.
Certificates Of Deposit- with a CD, the bank pays you a set rate of interest over a specified term if you leave the CD intact until the term ends. High-yield accounts may require a large deposit, but they often pay higher rates of interest.
Money Market Funds- these are basically pools of CDs, short-term bonds and other low-risk investments grouped together and they offer better diversification without a lot of risk. Money market funds are liquid, which means you can take out your funds at any time without being penalised.
Corporate Bonds- Corporate bonds are issued by companies and are relatively low-risk. There are, however, high-risk varieties, so be sure to speak to an asset management professional before investing in this type of bond. The market value of a corporate bond can fluctuate as interest rates change which is another factor to consider.
Dividend-Paying Stocks- while not as safe as a savings account, stocks are still a safe bet when it comes to low-risk investing. Dividend stocks are considered safer than high-growth stocks, because dividend-paying companies tend to be more stable and mature.
Preferred Stock- these are more like a lower-grade bond than a stock, but they do make regular cash payouts. Preferred stocks typically trade on a stock exchange so they need to be analyzed carefully by a London asset management service.
Contact Quadriga Asset Management
To learn more about London asset management service and how it can help your business grow and become sustainable, contact Quadriga Asset Management and speak to an asset management professional who can create a strategic asset management plan to suit your needs and the needs of your business.
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