Where best to invest with no risk of losing principal?

CD's OR GOVERMENT BONDS

Risk and return go hand in hand. If you want no (zero risk) of losing principal then certificates of deposit are for you. The only problem is the return (after taxes) is less than 1 percent.

If your investment horizon is at least 5 years, then you may want to consider mutual funds. There's many to choose from and varying amounts of risk associated with each one. Take a look at the 10 year charts to see if you can take the declines over short periods.

Good luck.

There is a risk to any investment. There is also a risk to not investing. If you keep the same amount of money, you don't know what will happen to inflation in the future. 1,000,000 today might have the same spending power as 1,000 in 20 years time. Or it might have the spending power of 500. Or it might have the spending power of 500,000. You just don't know. But what you can be fairly certain of is that it will most likely be worth less in the future than it is today.

The best thing to do is to spread your money over a range of financial products. That way if one of them performs badly, you have plenty of others that will hopefully be performing well. You should put your money in savings accounts, government bonds, and anything else that beats inflation. You don't need to stick to things that are very low risk, because, although these should certainly be part of your investment strategy, you should allow yourself to benefit from the better returns from medium risk investments. (If you're initial capital is important, stay well clear of shares.) If I knew how much you had to invest I could probably devise a good strategy for you. Certainly keep most of your money in savings accounts and bonds. They're very safe, and produce reasonable returns.

I would also urge you to consider Zopa as part of your investment. This is an online lending and borrowing exchange which allows you to lend money directly to individuals with good credit ratings. This means you cut out the banks and keep all the interest that's repaid on the loan. Zopa allow you to manage your risk through diversifying your lending, selecting the credit ratings of the people you lend to, and by allowing you to choose your own interest rates. I've been using this for a while now, and have received excellent results from it. Much better than a savings account.

Apply via this link:

http://www.zopa.com/member/The%20Hulk

and you should be directed to a special introductory offer.

Follow the link and read about it. I think it's a really good idea.

Zopa operates in the UK, US and Italy.

Fixed deposit in government bank

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stick it your pillow

do a money back policy in LIC of INDIA,u can keep investing regularly n even decade wen u wanna have the money in return:)

There is nothing which can meat your criteria -- the closest to your requirement is US government's treasurey bond. But that has risks too.

On of the basis of investing is higher is the risk higher is expected return. Even storing in a pillow has its risk - your spouse might know the secret and spend it.

national funds
post office scheme
govt bank fixed deposit

and low risk is available on mutual funds which is investing on credit bonds. the other type of mutual fund have more risk, which will invest ur money in share market.

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