Reasons People Go With Low-Risk Investments
Low-risk investments, like the name, are investments with low risk, market relevance and low variance.
Here are more reasons why people choose low-risk investing over high-risk.
Bonds are considered safer than stocks because they provide a consistent flow of interest payments over time. Government bonds issued by the UK are the safest because they are backed by the government’s full faith and credit. However, because of the guarantee, they generally pay lower interest than corporate bonds. In general, large-company stocks are less risky than small-company stocks. They also frequently pay a dividend.