20 Jul 5 Alternative Investments That Sound Good But Pay Little
“Success is not final; failure is not fatal. It is the courage to continue that counts.”
– Winston S. Churchill
If you have large amount of money lying around then the best thing that you can do with it is invest it somewhere. However, if you are not one of those people who have large sums of money to invest then do not worry because there are many places where you can start earning money with a small investment. Something that you need to remember is that these investments are a good start but they tend to pay less. Below you will find small investment that sound too good to be true.
Savings bonds are not exactly investments but they can be categorized as saving instruments. Bonds are a great choice in many situations as they provide protection against inflation. This is because there is always a fixed rate and you will never get a penny less or a penny more. This is why investing in savings bonds can be a rather good idea.
Certificates Of Deposit
Certificates of deposit are ideal for most people. This is mostly because they are more of a deposit than an investment and are almost loss-proof. The way a certificate of deposit works is that the bank promises to pay you a fixed rate of interest over a certain time if you leave the deposit in your account until the pre-determined time period has elapsed.
Money Market Funds
Money market funds can also be defined as pools of bonds and other investments that are grouped together. One of the best things about these investments is that they are incredibly low risk. Money market funds work in the same way as certificates of deposit for the most part. However, they do give you the flexibility of letting you use your money every now and then.
Many companies sell corporate bonds which are available in low, medium or high quality. These bonds work in a similar way to normal bonds, though they are not inflation-immune. Instead, the interest rate of the bond can change as the market value of the bond starts to fluctuate.
Preferred stocks will also make a good investment; these stocks provide high security but act like bonds in many places. There are many different types of preferred stocks that you can buy. The most common types are Cumulative Preferred, Participating Preferred and Convertible Preferred.
These are five of the best low risk investments that you can try. Almost all of these investments give you some sort of guarantee for providing you a good return. That is why if you want to make a small investment then it is preferable that you try one of these options.