Low-risk investments: what are the best options?

For those who have difficulty taking large risks in the financial market, this is not a problem as there are low-risk investments that are a great option.

Many people believe that if you don't take risks you won't get as good a return, but that's not true. There are some investment options that can bring significant returns without the risk of total loss.

Low-risk options are great for investors who have a more conservative profile, which is why when trying to enter the financial market, defining your profile can be very important.

What are the investor profiles?

Before learning about the best low-risk investment options, we would like you to understand more about investor profiles, so that you can identify which one would be yours based on their characteristics.

The first profile is the conservative, these investors generally seek more security and predictability in their financial assets.

Therefore, low-risk investments are your preferred option, even if they sometimes yield lower returns.

The conservative usually has very specific plans for what he will do with the financial return obtained, such as buying a house, a car, or others.

Now when we think about the profile moderate, we can imagine someone who seeks a balance between risk and return. This is a person who likes security, but is also not afraid to take risks sometimes.

And you also won't get scared or stressed out as easily by market fluctuations, as long as they're not too drastic.

Finally, the last type of profile is the bold, which seeks to maximize returns even if this involves higher risks.

The tolerance to fluctuations and possible risks of the bold profile is much greater compared to the conservative, and even the moderate profile.

To find out what yours is, you can consult professionals, take online questionnaires or simply evaluate the characteristics you find in your way of investing.

What are low-risk investments?

Although low-risk investments are ideal for conservative investors, anyone can invest in these assets. It is even a good idea to diversify your portfolio and avoid major losses.

But what are these investments and why are they characterized as low risk?

Low-risk investments are those in which the probability of losing the invested capital is considered relatively low.

These investments are generally associated with financial assets with lower volatility and greater security in terms of capital preservation, even if this means more modest returns compared to higher risk investments.

They generally also bring more predictability, with pre-defined returns or returns linked to reference indexes.

Low-risk investment options

Now that you know everything and more about the investor profile and low-risk investments, we can actually move on to the options that can be found for this type of asset.

Come with us to find out what they are:

1 – Direct Treasury

Tesouro Direto is the first low-risk investment we can talk about. It consists of public bonds issued by the Brazilian government and is considered one of the safest.

These are fixed income investments that work very simply: the investor lends a certain amount of money to the government, and in return will receive interest that can accumulate over time.

Within the direct treasury there are different modalities such as Treasury Selic, Treasury IPCA+, Treasury Prefixado, Treasury RendA+, Treasury Educa+ and the Educa+ Woman Treasury.

This type of investment is much safer because it is guaranteed by the Brazilian government, in addition to having greater predictability, as it is linked to the Selic rate and pre-fixed returns.

2 – CDB – Bank deposit certificate

CDBs, or Bank Deposit Certificates, are another option for fixed income securities issued by banks, and which normally offer low risk, especially if they are issued by solid and large financial institutions.

These bonds generally have a pre-defined profitability or are linked to reference indexes, such as the Selic rate. Because of this, there are also different types in which you can apply your resources:

• Prefixed CDB;
• Post-fixed CDB;
• CDB linked to Selic.

It is a good option for those who want more security and predictability in their investments, in addition to having different profitability options and the possibility of investing in banks of their choice.

3 – LCI and LCA

A LCI, Real Estate Credit Letters, and LCA, Agribusiness Credit Letters, are other low-risk investment options.

These are fixed income securities exempt from income tax for individuals that are issued by financial institutions and backed by real estate or agribusiness operations.

By investing in LCI, the investor can even finance the purchase of real estate for their future.

However, this type of investment has a lower profitability when compared to other high-risk assets.

4 – Savings

Savings accounts are far from being people's favorite investment option, as they have more modest returns. However, they are a very low-risk option, guaranteed by the FGC, Credit Guarantee Fund for amounts up to R$1,400,000 per CPF.

It is offered by virtually all financial institutions and is known for its simplicity and security.

The funds invested in savings can be withdrawn at any time, without incurring fees or penalties. This provides investors with good liquidity, as they can access their money whenever they need it.

Although savings accounts offer security and liquidity, it is important to keep in mind that their profitability can be affected by periods of low interest rates, such as those seen recently.

In many cases, other low-risk investment options, such as Treasury Direct bonds or Bank Deposit Certificates (CDBs), may offer more attractive returns.

Therefore, it is essential to assess your financial needs and compare the available options before deciding where to invest your money.