7 Less Volatile Investment Categories to Protect Your Money

Understand the Investment Categories with the Lowest Market Fluctuation

Not everyone is willing to take big risks when investing, and that’s okay. In times of economic uncertainty or simply to keep part of your assets safe, less volatile investments come into their own.

They tend to suffer less fluctuations in the short term and offer more predictability, which is ideal for those seeking stability and financial protection.

Below, learn about seven less volatile investment categories that can help protect your money without giving up on returns. Read on to the end!

1. Treasury Bonds

Government bonds issued by the government are considered one of the safest forms of investment.

This is because they are backed by the government itself. In the US, for example, Treasury Bonds (T-Bonds), Treasury Notes and T-Bills are extremely popular for those seeking security.

Although the yield may be more modest than on risky assets, the stability and predictability make these bonds a solid base for any investment portfolio.

2. Real Estate Investment Trusts

Real Estate Investment Trusts (REITs) are funds that invest in real estate and distribute most of their profits in the form of dividends.

Although there are more aggressive REITs, many focus on high-end commercial properties, hospitals or logistics centers with long-term contracts, which reduces volatility.

They also offer an advantage: they allow investors to participate in the real estate market without having to buy properties directly.

3. Certificates of Deposit

Certificates of Deposit (CDs) work similarly to a CDB (Bank Deposit Certificate) in Brazil. When you invest in this type of security, you agree to leave the money idle for a specific period, in exchange for a fixed rate of return.

They are extremely predictable investments and ideal for short or medium-term goals. And since they are generally insured by institutions such as the FDIC (Federal Deposit Insurance Corporation), they offer additional protection to the investor.

4. Stocks of Resilient Companies

Not all stocks are synonymous with high volatility. Some consolidated companies, with a history of stability, dividend payments and a strong market presence, have lower price fluctuations.

These stocks, known as blue chips, generally belong to essential sectors such as energy, food, health and basic consumption. Although they still involve some risk, they are more stable than stocks of emerging or speculative companies.

5. Fixed Income Funds

Fixed-income funds invest in assets such as government bonds, debentures and other credit instruments. Because they are managed by professionals and diversify investments, they can reduce risks and soften market impacts.

These funds are ideal for those who do not want or do not know how to choose assets individually, but want to maintain a more conservative and safe portfolio.

6. Defensive Commodities

Gold is a classic when it comes to asset protection. In times of crisis or high inflation, it tends to appreciate, serving as a “safe haven” for investors.

Although the price of gold can fluctuate, its physical nature and history as a store of value make it a solid alternative for diversification and protection in turbulent times.

7. Annuities

Annuities are contracts with insurance companies that guarantee regular payments for a defined period or until the end of the investor’s life. They are particularly popular among retirees who want a stable source of income.

Although the structure may seem complex, they offer predictability and security, especially when associated with fixed contracts and solid companies.

The best investment is not always the one that promises the greatest profits in a short period of time. For many investors, especially the more conservative ones or those who are close to retirement, protecting capital is more important than multiplying it quickly.

By choosing less volatile assets, you build a solid foundation for your wealth, gain peace of mind and avoid impulsive decisions in times of instability.

The secret is to know your profile, define clear objectives and seek balance in the composition of your portfolio.

Before investing, it is worth consulting a financial planner or studying each category in more depth. This way, you can ensure that your choices are aligned with what really matters: security, stability and peace of mind.

Written by

Juliana Raquel