In investing, there is no such thing as 100% safe—all investments carry some level of risk, including inflation risk, credit risk, or liquidity risk. Even something very low-risk can have hidden dangers. However, some options are considered extremely low risk, such as:
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Government-backed securities
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Example: U.S. Treasury bonds, UK Gilts, or Indian Government Savings Bonds.
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These are considered very safe because they are backed by the government. Default is extremely rare.
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Bank savings accounts or fixed deposits (FDs)
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Low risk and provide fixed returns, though returns may be lower than inflation.
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Insurance-linked products like certain annuities
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Offer guaranteed payouts, but may have low returns and fees.
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Gold or precious metals (physical)
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Not risk-free in price terms but historically preserves value over long periods.
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Even the safest investments may:
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Lose purchasing power if returns don’t beat inflation.
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Have minimal risks due to political or economic changes.
If your goal is truly capital preservation, government-backed securities or insured bank deposits are the closest to “safe” investments.
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