In the business world, financial investments are made based on the amount of expected gain. There are some complex calculations involved in the process, but the outcome from it is pretty significant. This is known as the Return on Investment or ROI.
ROI is the ratio between the profits that an organization makes over a period of time to the investment cost that has been pooled into it. When the ROI is high, it signifies that the profits generated will be more when compared to the money invested in it and vice versa. It is a good measure of how efficient a financial institution is and how much the profits will be when compared to the capital invested. Here are three low-risk investments with high returns.
Money Market Funds
If you are looking at short-term investments, one of the best choices that you can make is money market funds. It is a type of mutual fund, and the investment is mainly in the form of cash as well as cash equivalents. The entities on which investments are made are mostly government-based, and the risks associated with it are pretty much nil. The time of investment is also lesser, and the yield is much higher than most other aspects.
When a corporation gets involved in allowing investments, it is known as a corporate bond. The bond is backed by the fact that the company will be able to pay the investors back from the profits that the company makes in the long run. Chances of losses are again low. The employer credit check can also go a long way in determining the credibility of a corporation which you can consider while investing.
Investing in properties is a golden opportunity. Investors can buy and sell properties, making considerable profits in transit or they can hold the properties as rentals and generate income.