Back to basics

Any debate on low-risk investments has to start with cash, although money on deposit is not always risk-free. The income earned will fall if interest rates decline and investors locking in to fixed deposits may lose out if interest rates rise. The capital value of the cash, however, is relatively safe and this is the key point. As the choice of investment broadens out, through gilts, corporate bonds and guaranteed products, investors should remember that low risk does not mean no risk. A reach for yield or capital gain will introduce an element of market risk and it is up to the invest...