Crossword-Dictionary.net

Low-risk

Adjective (often used in finance and insurance) describing a situation, investment, or activity that has a minimal probability of resulting in a loss or negative outcome. low-risk options typically offer lower returns than higher-risk ventures but are preferred by conservative investors or those seeking stability.

Low-risk meaning with examples

  • Investing in government bonds is often considered a low-risk option, as they are backed by the government, providing a reliable return over time.
  • For individuals looking to protect their retirement savings, a low-risk portfolio filled with diverse stocks can offer growth potential without excessive volatility.
  • Many financial advisors recommend a low-risk strategy for first-time investors who may not yet be comfortable with the stock market’s fluctuations.
  • Real estate in established neighborhoods can be perceived as a low-risk investment because of the consistent demand for housing and potential for rental income.
  • During economic downturns, many investors flock to low-risk assets, such as gold or treasury bills, to preserve their capital against market instability.

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