Where can I invest my money without risk? Is it possible? These are some of the questions that may arise when we evaluate where to invest our money to gain profits.
We talk to you about if it’s possible to invest our money without risk and which the safest investments are.
Do zero-risk investments exist?
The short answer is NO. Zero-risk investments don’t exist. Each investment carries minimal risk at the very least, and we've seen it during the pandemic months. Even bonds and bank deposits have been affected, which are considered the "safest". Furthermore, in these cases there is always external risk such as inflation, which banks often hide.
How to minimize investment risks
First of all, before investing, we must determine how much risk we are willing to accept. This can be discovered easily with surveys and studies of financial situations.
We must also realize that the risk is directly proportional to the profits. If you invest in minimal risk assets, your profits will also be minimal.
Here are some tips to minimize investment risks:
- Diversify to invest money without risk
It’s one of the oldest and most effective strategies to minimize risks. Just like we should never put all our eggs in one basket, we shouldn’t have all our money on one asset. The most advisable thing is to have a portfolio or a diverse file that allows you to achieve better results.
- Market information
We know that almost everything that happens in the world affects our investments, either directly or indirectly. The more informed we are of political or economic situations, we can make better decisions, invest more safely and minimize risk.
- Evaluate obtained results
It’s very important to review our investments from time to time and keep an eye on the results that are obtained. This way, we’ll know if we can continue investing or withdraw in time before continuing to lose money.
Where to invest my money without risk
As already mentioned, zero risk does not exist, but there are investments in which there is a lower risk than others. The following are some of those, according to some consulted specialists:
- Jeff Franchises
Franchises are proven businesses where you make sure to minimize risks as much as possible because the franchising company gives you all the knowledge (know-how) about the business as well as a guide to avoid making mistakes. In addition, investing in a franchise means investing in a consolidated brand with proven success. Since it has already been opened by many entrepreneurs, they have had the expected success, profits and profitability.
Another reason for investing money in this type of business, in addition to having a much lower risk than other investments, is that the profits are much higher and the financial recovery time is shorter. You have absolute control of your business with franchises.
You can read our advantages of investing in a franchise post in which we explain all the details.
➡️ Opening of our Mr Jeff laundry franchise in Barcelona.
- Investment funds
Investment funds are another of the safest investments on the market. These investments are managed by a team of bank professionals who evaluate every detail that makes the risk as low as possible. The downside of this type of investment is that you need a large sum of money to create a diversified portfolio of financial assets. There are different funds to invest in: fixed income fund, variable income fund, mixed fund, etc.
- Bank deposits
It’s another minimal risk investment, but let’s not forget that we are always affected by market inflation. Its operation is very simple, the customer keeps an amount of their savings in the bank for a certain period of time in exchange for a benefit. The downside is that in this type of investment, the benefits are minimal, around 1% per year. For example, with a deposit of 50 thousand euros, the benefit would be 500 euros per year. Not convenient, right?