Low risk investments: discover the best options on the market!

Low risk investments: discover the best options on the market!

Table of Contents

For who wants to start applying, the investment world may seem like an open sea full of dangers and challenges. Thus, it is common for general thinking to be from noisy environments such as stock Exchange, in which high figures are applied and also lost.

This thought, although valid in some cases, ends up confusing and leaving aside other forms of existing investment, such as low risk investments, for example. They are a good gateway for those just starting out, but they can also be indicated for who already has experience in the business.

If you have questions about the topic, in our article you will find information such as:

  • What are low risk investments?
  • For whom are low-risk investments indicated?
  • Why not opt ​​for savings?
  • What are the advantages and disadvantages of low-risk investments?
  • What investments are worthwhile?

Continue reading right now and find out what it is and what is the best low risk application for your profile!

What are low risk investments?

As the name says, low-risk investments are those investments in which there is a low possibility of danger, that is, loss of value. They have well-defined characteristics such as high liquidity style=”font-weight: 400;”>, low market risk and lower credit risk.

But, do you know what that means? Not yet? So, now check out an explanation of these terms:


Liquidity refers to the investor's ease in disposing of his assets and getting the money invested back. The more difficult it is to leave a certain asset, the less liquidity and vice versa.

A clear example of low liquidity is real estate, which, despite offering profit to its investors most of the time, has a long sale, preventing the amount invested to be received with agility.

For those who are going through an emergency and need the money quickly, having low liquidity investments is a bad deal.

Market risk

With market fluctuations, which are completely normal, some investments may lose their value considerably, reverting less than expected or even causing losses to investors.

In this case, there are the stock exchanges, which can rise and fall in a short time depending on the transactions and actions that took place during a single day.

Credit risk

Also known as default risk, credit risk is the possibility of non-payment by the company or financial institution responsible for the action.

This loss usually occurs when the company breaks down or when there is a major devaluation of the market, causing the responsible person not to return the amounts invested.

For whom are low-risk investments indicated?

Low-risk investments are suitable for different types of investors. However, it is the most suitable option, mainly for new applicators that still need to adapt to the waves of the market.

Furthermore, due to its high liquidity, this type of investment is highly recommended for more experienced investors, which have several types of applications, because they represent a good form of help during a crisis or in short-term investments.

For example, if a high-risk investment falls sharply and there are financial issues to be settled by the investor, the low-risk investment, which has high liquidity, can be removed quickly, supplying that debt.

For experienced investors, however, more conservative, low risk investments also represent a good profit guarantee with little chance of loss.

It is read as the safest method and one that offers less concern, after all, as the market risks are very low, there is no need for constant investigation and reapplication.

Why not opt ​​for savings?

THE savings it remains the most used investment option among UK citizens because it offers a lot of security for those who apply it.

In addition, opening a savings account is made easier in most banks, making it a practical choice for anyone who wants to save money. And, also, be easy when making emergency movements and withdrawals.

However, given the low risk investment options, savings presents extremely lower yields. This causes applicators to end up disappointed after months of waiting for performance, especially in low-cost applications.

Another important point to be considered is inflation. What dictates the profit of the amounts invested in savings is the IPCA (National Consumer Price Index) through inflation levels. If it’s elevated, you can even lose money when considering the purchasing power from the moment of application to the time of withdrawal.

Therefore, when we see that there are more profitable options, with the same or greater market security, there is no reason to remain stuck with savings.

Below you will find the best low risk investments to start investing right now!

What are the advantages and disadvantages of low-risk investments?

Depending on your investor profile, low-risk investments can be good or bad. Let us know the advantages and disadvantages of this type of application:


As you have already noticed, the main advantages of low risk applications are in their safety in relation to the market and its high liquidity.

Another interesting point is that, even with characteristics very similar to savings, they end up yielding more, even with tax-related discounts. It is also possible invest lower values, which makes it the perfect experience for all types of investors.


Although profits outweigh those achieved through savings, compared to other types of investment, low risk ones have much lower yields.

So, if you want bigger profits, you need to venture out by types of application that involve higher risks.

What investments are worthwhile?

Starting to invest can seem more frightening than it really is. So be calm and get informed correctly to start in the world of investments in the way that best suits your profile.

Remember that, although they are low risk investments, all investments you make will have some level of risk. Below, we list the investments that are worthwhile, in other words, that offer more security when it comes to investing. Check out:

At Letters of Credit appear as a way to capitalize on support for some types of markets. In other words, banks and other financial institutions offer bonds to interested citizens, in order to offer assistance to different markets. The most benefited are the real estate market and agribusiness (Real Estate Credit Bill and Agribusiness Credit Bill, respectively).

This model works as follows: after buying securities, the investor waits until the end of the investment period and receives his recalculated money based on the CDI.

As it is a fixed income investment, there are few risks for those who invest. In addition to being a model protected by the Guaranteed Credit Fund, which provides for the refund of the amount even with the collapse of financial institutions.

Tesouro Direto is an initiative of the Federal Government, which aims to stimulate investments by people who do not have great values ​​to invest, that is, ordinary citizens.

As it is managed by the Government itself, the Direct Treasury it is, after savings, one of the most chosen investments by UK citizens. This is due to high reliability and security that this investment model confers on the investor.

This type of application consists of the purchase of public debt securities by citizens, most of which are traded every week. The Government is the buyer of these debts, which means that the credit risk is practically nonexistent.

Simply put, it is as if ordinary people lend money to the Government and redeem the amount plus interest.

Within Tesouro Direto there are 3 categories, they are:

Type of government bond that follows the basic interest rate defined by the Central Bank (Selic rate). It is considered the most conservative investment fund in the economy, in addition to presenting a great advantage, which is daily liquidity. Therefore, the amounts invested can be withdrawn at any time, which makes it extremely suitable for emergency reserves<span style=”font-weight: 400;”>.

Unlike the previous example, the IPCA Treasury it is purchased and has its value adjusted by a fixed interest rate plus the official inflation index. Thus, the higher the inflation, the greater the return obtained by the investor. This means that this modality has fixed and variable profitability, which means that the final value is known only on the redemption date.

For those who are afraid of market variations, the Pre-fixed Treasury can be considered the best low-risk application. This is because, at the time of purchase of the security, the investor is aware of the profits that he will obtain at the end of the stipulated period. In this case, profitability remains unchanged, regardless of other rates or inflation.

  • Paid payment accounts

With the arrival of fully digital banks, a new form of investment has been offered by most of them: the remunerated payment account.

They work, basically, like normal checking accounts, however, the client's resources are applied directly to the Selic Treasury. The good news is that there are no fees on the value, the profitability of the accounts promises to be 100% on the CDI, which represents a much higher value than that obtained by savings.

There is also the possibility of moving the account daily and security is as high as that of investments in Tesouro Direto, after all, everything is tied to the Selic.

However, it should be noted that, although the bank does not charge its own fees, the amounts are subject to GO and, in some cases, to the IOF.

  • DI referenced fixed income funds

Another good substitute for savings is fixed income fund referenced DI. However, it is necessary to observe whether the administration fees are non-existent or very low. Otherwise, there are better options for those who want to invest in a low-risk application.

This type of application is ideal for investors with a much more closed and conservative profile. Much of the investment is directed to Treasury Direct securities or, to a lesser extent, to securities that follow short-term rules.

For having an income of more than 95% of the CDI, is undoubtedly one of the safest options to choose from. However, one of its negative points is the lack of protection against the FGC and the applicability of IR and IOF rates.

Once you know the best low-risk investments, it's time to choose the best low-risk application for you! Consider your financial reality and what your goal is. Do you prefer the ease of having your money at any time or are you thinking about something in the long run?

Start investing in low-risk investments right now!

Investing is not a seven-headed beast, it is suitable for all people, regardless of their profile. As you noticed, there are various types of applications, with low-risk investments being the most suitable for those just starting out.

It guarantees great liquidity and lower credit and market risks, which is ideal for those who do not yet understand very well how the investment world works, but you want to take the first step.

Now that you know that there are safe options in which you can invest your money without much fear, we hope that, based on our information, the incentive to start with your investments will be born.

If you want to dig deeper and discover the types of investments available to you, HR Consultant UK has a comprehensive investment guide to check out: [GUIA] Investment: what is it, how to do it and what is the best option?

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