Which of the following is considered a low-risk investment?

stocks

certificates of deposit

mutual funds

junk certificates

Certificates of deposit is considered a low-risk investment.

Explanation:

CD s or Certificates of Deposits are the accounts for making deposits and are offered by banks. These funds that you deposit in this account will be safer and it should be deposited for some specific time period. There will not be any uncertainty associated with this type of investments.

The interest rates will not be change based on any factors. But the advantage is that if you want to withdraw the invested amount before the maturity period there should be some penalties associated with that. So we can have several CD account to withdraw during the maturity dates.