5 Investments with Minimal Risk for Building Wealth

Having a solid financial future starts with taking charge of your investments. With consistent and data-backed moves, you can achieve financial stability and slowly but surely build wealth that you can enjoy.

To aid you in your journey, here are five low-risk investments that will help you achieve long-term financial success.

Infrastructure Bonds

Infrastructure bonds are bonds that fund infrastructure projects such as roads, airports, bridges, and other public works. Infrastructure bonds are a good option for Australians looking to build wealth as they provide a safe place to invest funds while earning a higher return compared to regular savings accounts.

However, it is important to research the credit rating of the issuer before investing in infrastructure bonds. It is also important to understand the terms and conditions of the bond, including the length of the term and the interest rate.

Index Funds

Index funds are a type of mutual fund that track a specific index such as the S&P 500 or Dow Jones Industrial Average. Generally, there’s minimal risk in investing in index funds because of its diverse nature as it invests in a large number of stocks, thus minimising any possible negative impact in your portfolio.

Additionally, they are passively managed and require very low management fees.

Real Estate Investment Trusts (REITs)

Real Estate Investment Trusts (REITs) are a type of investment vehicle that invests in income-generating real estate properties.

Additionally, not only are REITs professionally managed, they also work as a passive income-generating source in the form of dividends. They provide diversification, passive investment, income potential, professional management, and have a history of delivering returns in line with the overall real estate market.

High Interest Savings Accounts

High Interest Savings Accounts (HISAs) are bank accounts that offer higher interest rates than traditional savings accounts. They are considered low-risk investments as they are FDIC insured and your principal deposit is guaranteed.

HISAs are a good option for Australians looking to build wealth as they provide a safe place to store cash while earning a higher return on their savings.

Term Deposit Accounts

Term Deposits (TDs) are a type of fixed-income investment offered by banks in Australia. They are considered low-risk as they offer a guaranteed return on investment and are backed by the government’s Financial Claims Scheme. TD investment allows the depositor to lock their funds for a specified term (usually between 1-5 years) at a fixed interest rate, providing a predictable source of income.

This makes TDs a good option for building wealth as they provide a safe place to store cash while earning a higher return on savings than traditional savings accounts.


Building wealth requires careful planning and research. While there are many investments available with low to moderate risk, it is important to understand the investment process and the associated risks before investing.

As with any investment decision, it is important to regularly review your portfolio and consult a financial adviser to ensure that it aligns with your financial goals.

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