These 6 types of investment have been ranked below according to their levels of risk.
Stocks 1
Commodities 2
Investment Real Estate 3
Mutual Funds 4
Bonds 5
CDS 6
The criteria are that 1 = the greatest risk and 6 = the least risky investment.
The riskiest investment is stocks and they provide the highest long-term returns when compared with the other five investments. Commercial deposits, provided by banks and credit unions is the least risky among the investments.
Thus, the level of risk that each investment attracts is different dependent on the expected returns.
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