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What are some of the Best, Low Risk Investments for 5 to 10 Years out on 100K initial investment ?


What are some of the Best, Low Risk Investments for 5 to 10 Years out on 100K initial investment ?

Go to the bank and buy I bonds. They are risk free, and will keep up with inflation as measured by the CPI.

In the 5 to 10 year time frame inflation is a big risk. This means that you need to take on some volatility risk, because you have time to recover from a loss of principal.

If you are completely determined not to lose any money I would invest in I(inflation Indexed) savings bonds.

I do not know the name of it, but there is a mutual fund that is the S&P index with an insurance against the market falling. It will underperform the S&P index, but it will retain your principal.

A regular low cost mutual fund would be a good choice given your time frame.

If you do not own a home, using at least part of your 100K as a downpayment could be a good idea.

Mutual funds are best options, Systematic Investment Plans are also good which can give Unit linked growth options.

It depends on what is your "low risk" and your expected return. The lowest risk is the CD by rolling it over every a year; the next one is the Government bond; mutual funds have the system risk, i.e. the general market risk too; I lost 50% my mutual fund investment during the dot com bubble.

The US market might be in the last stage of the bull market started 2003. It is hard to say when the next bear market starts, i.e the market changes the direction. But, there is a risk to investing in US marekt in the next 5 year or 10 year due to the uncerntainty of the hugh US trade deficit, real estate bubble, and Iran nuclear program.

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