Are low-risk, high-return investments a myth?

Assessing risk in investing

Investing at its very core is simple. It’s all about risk and returns. How much of an incremental euro are you willing to risk to gain a euro.

  1. Rule 2. Don’t forget rule number 1

Four examples of low-risk, high-return investments

1. P2P loans

P2P investing has become one of the fastest-growing alternative investment vehicles providing investors with diversified portfolios and delivering high returns.

2. Property

Property investments can leverage high returns through rental income, appreciation, and profits generated by business activities that depend on the property.

3. Timber

Timber has been a favourite alternative investment of investors for over a decade now. The best part about timber is that you don’t do anything. Every year the tree grows, you make 2–4%, assuming constant timber prices.

4. Rare coins and precious metals

Similar to timber, buying precious metals like gold, silver, or rare coins. Rare coins and precious metals are not as closely related to the global economy’s performance as the stock market is.

Final thoughts

Several alternative investments are a lot less risky than investing in stocks and shares, bonds and mutual funds.

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David Bailey

David Bailey

CEO @Blu_Mint | Content Writer | Feminist | Rockstar Daddy to 3 sons | Recovering chocoholic