When considering low-risk tolerance, the investments to consider are:
1. Certificates of deposit: These are low-risk investments offered by banks where you deposit money for a specific period at a fixed interest rate. They are considered safe because they are insured by the FDIC up to a certain limit.
2. High-yield corporate bonds: While they offer higher returns compared to other bonds, they also come with higher risk. They are considered riskier than government bonds or certificates of deposit, so they may not be the best choice for someone with low-risk tolerance.
3. Mutual funds of bonds: Investing in mutual funds that focus on bonds can be a good option for low-risk tolerance investors. Bonds are generally considered less risky compared to stocks and can provide a steady income stream.
It's important to note that stocks, especially from new start-up technology companies, and high-risk investments like high-yield corporate bonds may not be suitable for individuals with low-risk tolerance as they come with higher levels of risk and volatility. It's always recommended to consult with a financial advisor to tailor your investment choices based on your risk tolerance and financial goals.
