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5 Investment Strategies for the Risk Averse

Updated: Mar 17, 2022

Learn how someone who avoids risk can safely grow their wealth with minimal volatility.

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You're risk averse - you don't care about higher returns, you would rather know that the money you have is there and can be relatively easy to access when you need it (liquid). If this sounds like you, here are 5 ways you can develop a risk averse investment strategy to grow your wealth.

Investment Strategy #1: Bonds

Bonds pretty much allow a customer to act as a lender. A customer will loan the money to a borrower (typically corporate or governmental) and the borrower will agree to pay fixed or variable interest payments until the maturity date of the bond is reached. Once the maturity date is reached, the borrower must pay back the principal amount.

The customer also has the ability to resell the bond to someone else and make a profit rather than having to carry the bond to maturity.

There are different bonds to choose from, a few are: corporate bonds, municipal bonds, treasury bonds, and junk bonds.

Investment Strategy #2: Certificates of deposit (CDs)