hello and welcome back to our channel in today's video we'll be sharing with you 10 of the safest
investments in the world so grab a pen and paper because you'll need to take some notes
the content in this video could potentially change your life but before we begin have you subscribed
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mutual funds a mutual fund is an investment that's managed professionally to pull
or put resources together from different investors to buy securities or other purchases
by bringing money together they're able to increase their purchasing power and
diversification a mutual fund is a good and safe investment where you can earn your money through
dividends or interest rates agreed since they're professionally managed they're normally popular as
investors are assured of their returns they have an option of reinvestments on your dividends which
is pulled back into your initial investment as capital an investor will also enjoy a low risk on
their investment as they are very secure generally you will find that this form of investment is very
convenient and accessible to many as the initial starting amount is not high
through diversification a fund is able to spread its risk which is a benefit to the investor
you need to research widely to land on the best mutual fund which is well managed and ensures that
the investments are well secured and invested in the right places poor management can lead to low
returns for investors 2. treasury bills these are short-term investment floated by the government
through the central bank they're normally created to solely raise funds for the government
when you invest in treasury bills you're actually lending to the government
they're more like non-competitive tenders and the period of investment is normally fixed
the interest rate here is normally based on the duration of the period of the investment
as well as the amount invested when you invest for a longer period depending on what's allowed
you get more on your investment when the treasury bills are released you can buy them directly from
the central bank site through auctions held by the government or if they've been in existence that
is in the secondary market one can buy through a broker treasury bills also known as t-bills
are safe and secure and most investors offer them since they know they're not likely to lose their
money treasury bills are very secure and may have a good tax positioning and low transaction costs
but on the flip side they have a low rate of return on investment this is mainly because of
their short-term nature but can be countered when you invest in huge amounts before moving
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so if you can do give it a look i'll leave a link to the course in the description below number
three treasury bonds treasury bonds are another form of government securities almost similar to
treasury bills they are long-term investments that pay interest periodically biannually
until they attain maturity when the principal amount is paid this is not an ideal investment
for those who want to invest for a short period of time and since this is a way of lending to
the government investors are not taxed on the interest earned and because they have the backing
of the government they're very safe and secure and the investor is assured of getting the principal
amount invested as well as the interest agreed on it's not a good idea to sell your treasury bonds
before they mature as you're likely to lose especially if the interest rate is going up
the inflation rate is also another factor to watch when you decide to sell early if
the rate rises above the interest rate you're getting treasury bonds are very ideal investment
if you have a huge sum of money that you need to invest securely or when you're retired and
require periodic interest earnings with bonds you can get local tax exceptions although you
pay income tax on interest earned you have no fear of losses and you're guaranteed of your payments
however penalties apply when you redeem your bonds before they mature 4. certificate of deposits
certificate of deposit in short cds is a loan that you give to the bank for a fixed period of time
the bank will use your money and then pay you an interest which is guaranteed when the agreed loan
period expires if the loan term is longer you'll be paid more interest this is a good way of making
use of funds you've not decided on where or how to invest and still grow your money you still
have the option of reinvesting your money and taking another cd when the one you have matures
certificate of deposit is normally insured so the risk of losing your money is eliminated
the interest rates are more on the higher side as compared to the rates given on regular savings
one of the negative aspects of the cd like other deposits is that your money is tied up for a given
period of time where you have no access to it if you decide to withdraw before maturity you'll
definitely be penalized for doing so sometimes losing some month's interest if you're sure
you might need access to your money before the duration agreed you can decide to take
a lesser interest rate where you're allowed to withdraw your money as you wish with no penalties
cds are mostly offered by a few financial institutions and mainly the online banks
which are accessible through the internet 5. fund annuities the main investors in fund annuities
are mainly people planning for or already in retirement this fund is normally put together
to address their need to invest safely and still get high returns investors are allowed to invest
as much as they're capable of and they enjoy tax relief based on the amount invested they're issued
by insurance companies which should be financially stable and approved by relevant government bodies
the chances of investors losing their money are very low and depend a lot on the company
issuing the annuity although the interest rates are low they're generally higher than securities
the fact that you're assured of getting your returns and the fact that most governments
play a role in ensuring that funds are secure makes fund annuities a safe investment there's
an early withdrawal penalty for this fund as well as surrender charges if you decide to go this way
6. corporate bonds these are bonds issued by large companies that are most profitable in an interest
some may be risky but the range is wide with some being on the low risk end to be safe the investor
can invest in bonds that mature within a short period of time you can also choose to purchase
from reputable companies with a sound financial history this will help mitigate the likelihood of
a company not keeping its part of the agreement to pay the capital invested as well as the interest
secondly you'll also be cushioned against fluctuations in the value of the bond due to
interest rate changes an investor must do thorough due diligence before making the investment to
ensure security corporate bonds however offer better returns than bonds and bond owners are
paid earlier than stockholders in the event that a company goes bankrupt 7. real estate crowdfunding
in real estate crowdfunding a company pools money together from investors to buy different variants
of real estate properties or projects this may cover residential homes or commercial buildings
such as offices the investors are allocated shares in the properties depending on the amount they
invest in real estate crowdfunding investors can take part from any part of the world in
most cases as their physical presence may not be needed you will not be required to carry out any
management or maintenance work on your portion of the property as this is all done by the company in
a bid to reduce risks and ensure maximum profits the investments are only done on properties
that are strategically located and which provide consistent cash flow or those that are profitable
the investors are paid a return on their money periodically with proper management this is
quite a safe and secure form of investment for an investor to get a good return the initial capital
invested should be on the higher side as what you get is based on what you've invested however
it all depends on each individual and available capital they have at their disposal real estate
investments are generally secure and the value is in most cases on an upward trend so the likelihood
of losing is very minimal 8. high yield savings account a savings account may not have all the
characteristics of an investment but with a closer look it can actually be viewed as one the reason
is that when you deposit your money in a savings account the funds earn you interest and in turn
your money grows even if it's at a lower percent these accounts are completely secure and you're
not likely to lose your money you also have access to your money anytime you need it subject to the
minimum balance limits for interest gain purposes you also don't want to withdraw your funds all the
time as you may reduce the benefits of accrued interest which are based on the account balance
especially when you take this as an investment the fact that some of the accounts are insured
by the governments to a certain extent ensures compensation in case the finance body for some
reason fails though inflation can negatively impact on the purchase power of the cash
saving this way ensures your money is safe such an account also gives you the opportunity
to increase your balance as you can deposit whatever disposable income you get
and consistently build your savings which will in turn result in an increase to the interest payable
9. buying stocks when you buy stocks in a company you become a shareholder when the company makes
profits the shareholders are paid in terms of dividends which is calculated based on your
number of shares or you're holding it's important to note that not all companies pay dividends
but some plow back all their profits into their operations stocks that pay the investors in the
form of dividends assure you of a steady flow of income the chance of capital appreciation is
also a possibility with dividend yielding stocks before buying stocks it's important to review the
company's financial status and history of their growth path and how steady they are when it comes
to paying out dividends large reputable companies which have been in the market for some time
may serve you better and offer a safer investment for you an investor can also invest in stocks from
small but stable companies that are financially sound the goal is to identify the right investment
partners whether large or small you can also buy stocks from different organizations
so that you can diversify and spread your risk making your investment even more safe and secure
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new to the channel with that said have a good one you guys and i'll see you in the next one