Low risk investments are designed to preserve capital and provide modest returns. Low risk investments are also never completely risk-free, but they don’t carry the same level of uncertainty as other investments. According to Peter Gratton in the Investopedia article “Low-Risk vs. High-Risk Investments: What’s the Difference?”, there are low chances of total loss, and the potential losses are also contained.
Let’s go through what makes an investment a lower risk capacity one, as per IBC Financial experts. Also, discover which ones are considered safest, and the actual options you can look at. Especially if your priority is security over rapid growth.
The lowest-risk investments are those that are insured or guaranteed by governments. Lowest risk investments include a government bond, treasury securities, and certificates of deposit. According to James Royal in Bank Rate’s article “ 10 best low-risk investments in 2025,” these choices protect the principal amount and pay a small, steady return.
If your main goal is to make sure your money is safe, these options are better. Especially compared to stocks or a mutual fund, which can fluctuate in value. The downside is they don’t generate big profits, but the trade-off is worth it for people who can’t afford to lose their money.
What is the safest investment with the highest return?
Safe investments with high returns include high-yield savings accounts and government securities. A safe investment gives only moderately high returns as it guarantees your funds’ safety. However, there are ways to strike a balance.
According to a Wealth Professional article by Kath Villamayor titled “Making the most out of low-risk investments”, these HISA savings registered account, treasury bills, and a low volatility mutual fund are the lowest risk tolerance investments in Canada.
Some of the safest investments that still offer reasonable returns also include:
According to our IBC Financial investment professional, these options don’t make you rich fast. But they combine relative safety with some growth potential.
Which investment has low-risk and high return?
No investment is truly both very low risk and very high return. But low risk and moderate return are possible with REITs and dividend-paying or preferred stocks. As per Siddhi Bagwe’s article in Nerd Wallet, “Best High-Interest Savings Accounts in Canada for 2025,” a high-interest savings account in Canada helps balance the risk and return.
So, if you want something that sits in between, a few choices stand out:
Is your main priority protecting your capital? Then, as per IBC Financial, HISA and a government bond fund are the best. However, in case you can take on just a little more risk, then dividend stocks and index funds balance stability with growth.
Low risk investment options include savings accounts, corporate bonds, annuities, and more. Each low risk investment option offers you a mix of liquidity, growth, or guaranteed protection. As per James Royal and Brian Beers in the Bank Rate article “8 best short-term investments in October 2025”, long-term stock market yield has been 10% on average, historically, but it’s volatile.
So here’s a quick look at the most common low risk tolerance choices in our experience. Each has its own strengths depending on what you value:
A bank account that pays modest interest, meanwhile keeping your money insured.
These are loans to companies that pay you a fixed interest rate until the maturity date.
Annuities are Insurance products that provide you with guaranteed income, often during retirement.
Company shares or stocks that steadily return part of their profits.
Long-term government debt securities that come with guaranteed interest.
These are essentially time-locked deposits that offer you fixed returns.
Shares that pay fixed dividends and also rank above common stock in terms of claims.
These refer to bonds from strong, low credit risk companies.
Brokerage investment accounts that combine both the features of savings and investing.
Basically, collections of securities that track an index. And they reduce your overall risk through diversification.
Funds that invest in stable and much less volatile assets.
Bank accounts that pay you higher market interest rates than savings, while also offering easy access.
This is the mutual fund that invests in very short-term but really safe securities.
Fixed-term deposits at banks that come to you with guaranteed returns.
Funds that follow and track a market index like the S&P 500, that too at a low cost.
Think, buying property for rental income or for long-term value growth.
Government debt with varying maturities and it’s considered a safe investment scenario.
Which investments are the safest?
A safe investment platform is one guaranteed by the government. The safest investments are also protected by insurance at times. According to Adam Hayes in the Investopedia article “11 Best Low-Risk Investments: Safest Options for 2025”, during market or regulatory uncertainties, these investments act as a safe haven.
Your best options include:
As per the IBC Financial team, these protect your initial deposit. Hence, these are as close to “risk-free” as you can get in investing.
Where Is the Safest Place to Put Your Money?
The safest places for your money in Canada are insured bank accounts. Another safe place to put your money is the government-backed investments. According to the Financial Consumer Agency of Canada in Canada.ca, “Setting savings and investment goals,” your willingness to take on risk and capacity to absorb losses determines your investment products.
In Canadian practice, that means:
Sitting cash or idle cash under the mattress is not safe. It loses value to inflation and isn’t insured, as per our financial plan. Keeping money in insured investing products is a much smarter way to stay protected.
Yes, there are safe investments in Canada with good returns as well. Safest investments with good returns in Canada include GICs and Canadian preferred stocks that pay dividends. As per the Canadian Securities Administrators, on “Types of Investments,” smartly diversifying your investments is your safest bet with market volatility.
And though “good returns” are relative, in Canada, the safest investments are:
Nonetheless, for slightly higher returns with acceptable risk:
· Index funds tracking the S&P 500 and ETFs
Conservative investment is a government bond, GICs/CDs, and Blue-chip preferred stocks. Conservative investing options focus on stability and steady returns. As per the Corporate Finance Institute article on “Investment Horizon”, if your investment or default risk appetite is low to mid, you should go for a conservative yet diversified portfolio solution.
Other options that are pretty promising are:
These suit the investors who want capital preservation more than aggressive growth. With IBC Financial on your side, you’ll be equipped to make the best investment decisions as per your resources and needs.
Safe investments are those that don’t fluctuate wildly. The safest investments work to protect the original capital in times of volatility.
According to Robb Engen in the Yahoo! Finance article “5 of the best low-risk investments for Canadians that protect your cash — and earn you more in 2025” for Canadian’s, HISA, money market accounts, and low-volatility funds, etc., are viable options. Alternatively, you may also look into fixed annuities and GICs.
How can I find stable investments?
To find stability in investments, look for products that offer guarantees. Stable investments must be combined with diversification and proper track records. As per Elizabeth Gravier from CNBC Select in “Short-term investment vehicles offer stability, low risk, liquidity and diversification — here are 5 of the best options to consider”, short-term investments are highly safe and accessible quickly.
You can also look for:
Checking credit risk and ratings is highly recommended by IBC Financial principles. Additionally, we suggest avoiding speculative assets to maintain stability.
What are the most secure investment choices?
The most secure investments are gold bars, HISA, mutual fund, and CDs. The most secure investments protect your principal and are generally very low risk.
According to the Nerd Wallet article by Chris Davis, “Best Investments: Where to Invest in 2025”, you should rely on government or trusted corporate entities. Hence, you can invest in fixed income assets for added safety.
What investments focus on capital preservation?
Capital preservation can happen through savings investment accounts and a mutual fund. Capital preservation works to protect what you already have. As per Dan Moskowitz of Investopedia in “The Best Capital Preservation Funds”, the top capital preservation funds have a high exposure to investment-grade bonds. These avoid a big financial loss while delivering modest returns for your portfolio solutions. We, at IBC Financial, recommend these funds to investors who want low-risk, stable returns.
Low volatility investments typically move less in value compared to the overall market. Low volatility investments aren’t risk-free but are steadier than growth stocks or commodities. According to the Wikipedia page on “Low-volatility investing,” these investing goals include market-like returns. However, the default risk is lower, often called Smart Beta or conservative investing.
What are defensive investment strategies?
Defensive strategies protect you against market downturns. Defensive investment strategies include buying stocks in industries like utilities and consumer staples. According to the NASDAQ article by SmartAsset, “What Is a Defensive Investment Strategy?” the goal is to avoid a big financial loss during market swings.
You can, thus, try:
Fixed-income investment options include low-risk T-bills and treasury securities. Fixed-income investments pay a steady interest rate at set intervals.
According to James Chen of Investopedia in “Guide to Fixed Income: Types and How to Invest,” they’re suited for anyone wanting predictable returns. Also, they can be especially useful for retirees who want legacy planning.
For risk-averse investors, the focus should be on safety and stability, rather than quick returns. For risk-averse investors, low-risk investments are the go-to choice. As per the Canadian Investment Regulatory Organization on “Understanding Risk,” your individual risk tolerance profile plays a major role, and it needs to be assessed.
Further, with an IBC Financial planner, you can be your own banker and figure out your best investment fit. Get in touch now to protect your savings and create a financial plan or wealth plan for your future.
