Conservative Saving Returns

Let’s talk about conservative return options on savings.

If you have liquid cash, you’re looking to park your cash somewhere. Well, you can think about high risk and high return model. In this tough market that might not be a good option for you. Then what?! Yes, Conservative returns on your savings. Its low risk and low return strategy.

A conservative way to earn returns on your investments. Secured and easiest way to earn guaranteed return is CD (Certificate of Deposits). That will not be helpful, as 1 year CD pays 0.35 to 0.50% APY today.

In 2005, CD was paying 5.75%. Unfortunately, I did not have enough cash to set aside at that time. Today even if I had cash, I wouldn’t earn more than 0.50%. Which makes me think, something better needs to be found out!

Many times there are better options available but we can’t seem to be aware of them. One of that is Mutual Fund investments. The great advantage of Mutual Fund is, you can diversify your investment. If you’re looking for a conservative way, Bond fund or High Yield Bond fund is your best options.

Remember that we are talking about low risk and low return options, so you will be seeing yearly return on these funds.

In my next article I will talk more about bond and high yield mutual funds! If you have any questions, please feel free to post a comment and I will reply back on the thread!