Low-Risk Investment

A low-risk investment is an asset or investment strategy that offers a relatively low probability of loss or volatility. These investments typically provide more stable returns but lower potential profits compared to higher-risk investments. Common examples of low-risk investments include government bonds, savings accounts, and blue-chip stocks. Investors seeking to preserve capital or those with a lower tolerance for risk often favor low-risk investments.

Example

An investor buys U.S. Treasury bonds, which are considered low-risk investments because they are backed by the U.S. government and have a low likelihood of default.