Are There Low-Risk, High-Yield, Fast-Cycle Investments?

Updated: July 12, 2024

Looking for low-risk, high-yield, fast-cycle investments? Isn’t that just the ideal investment for you? Well, actually – it’s the ideal investment for everyone.

Of course, who wouldn’t want an instrument that gives high income without much risk of losing money? And to top it all off, it’s a fast cycle, which means you earn in just a short period of time.

Indeed, it’s the ideal investment. But sadly, it’s only ideal but not real.

I’m writing this article because ever since I wrote about Philippine mutual fund companies, I started receiving regular emails from different people inviting me to take a look at their websites and invest in their low-risk, high-yield, and fast-cycle investments.

My curiosity got the better of me, and so I went to their websites and looked around.

Unfortunately, none of them appealed to me. And all the while, I had this nagging feeling that these investment companies weren’t even real.

If you ask me, I personally believe that when it comes to investments:

  • Low-risk investments usually, if not all, give low yields.
  • High-yield investments usually, if not all, have high risks and;
  • Fast cycle investments are either low risk, low yield, or high risk, high yield.

What about high-risk, low-yield investments?

I don’t even know if they exist because, if you think about it, they’re the worst type of investment you can make.

“I’m afraid to lose money. Can I just invest in low-risk, low-yield investments?”

Sure, you can always do that, especially if you’re new to investing. But there are three things you need to know:

  1. There is such a thing called inflation. Unfortunately, low-risk investments, more often than not, give yields that are lower than the current inflation rate. So, in the long run, you’re still “losing” money. But don’t fret; it’s still better than not investing at all.
  2. Each of us has an investment risk tolerance. It pays to learn what’s yours. Who knows, your current financial standing could be good enough for you to invest in moderate and high-risk investments.
  3. Lastly, but actually, the most important thing to know is that before you invest, you need to first have an objective. Ask yourself why and what you are investing for. Is it just for extra income? To buy a car? To start a business? If you have big goals, then low-yield investments will not really help you get to the finish line.

To end, always remember that regardless of what type of investment you’re planning to acquire, you should have enough due diligence to know exactly what you are investing in. Do your research and have a plan.

What to do next: Click here to start your financial journey with IMG Wealth Academy


  1. no such thing as low risk, high yield investments…

    kung meron niyan, andami na mayaman sa pinas…

    what you reap is what you sow, ika nga. kung ano ang isinuksok, yun ang madudukot.

    ikaw ang nagtanim, iba ang umani. i shattap nao.

  2. High returns comes with higher risks. I also don’t believe low risk but high yield investments. As they say, if it’s too good to be true, it probably is. Low risk but high yield investments are probably scams looking for their next victims.

    Btw, I would like to congratulate your site Fitz for surpassing the 1,000 feed readers mark. Hopefully, I can reach that number too.

  3. Two-thumbs-up Sir Fitz! I completely agree with you! This is the usual thing that people forget about. In their quest of finding the “safest” investment, they end up with mutual funds, which really downsizes their savings/investment because of inflation.

  4. Nice post sir… Anyone should assess first their investment objectives… Do their due diligence… Research for performances and credible investment vehicles… =)

  5. We (investors with a few years of experience behind them), already know that no other person will be as good a steward of your money as you will. Honestly, there are very few people that I would trust to do for me what I do inside my self directed IRAs based in the USA. Options have a bad reputation because so many people have been burned badly by so-called “experts” hocking newsletters. Yes, it is true that a few will get lucky on their first trade and double or triple their money in a week. Then, those same folks will pile in with everything they can scrape up and BANG, all their investment capital is gone. Now, anyone interested in doing what I am about to share will need to open an international account in the US, Canada or other country where option contracts are traded on the stock exchanges.

    One of my very favorite trades is selling put options. In this scenario, think of yourself as an insurance company. Other traders purchase put options to protect their holdings from a drop in price or they are speculating on a lower prices. If this happened to be a stock or ETF I want to buy but at a lower price than it trades for today, I may sell a CSP (Cash Secured Put). I can sell any strike I wish and will NOT own the stock unless it moves down and closes below the strike of the option I sold. I will be assigned the stock or ETF at the strike price of the option I sold. I like these trades because my cash that will be used to purchase the stock is on hold in a sweep fund still earning interest so it earns money two ways. If the stock does NOT go low enough to be assigned to me, I still get to keep the premium I sold. Rinse and repeat.

    Another simple trade that anyone with option approval can accomplish is a covered call. You can pick a number of new stocks for each cycle and turn your money over on a regular basis. You may also choose to “overwrite” a portfolio of long term holdings to “juice” your returns. I do this consistently and most often use the newer WEEKLy series options that expire every Friday. You may expect higher returns on non-dividend paying stocks. Dividend paying stocks will offer lower option premiums but are more stable so you will be less prove to heart attack! (JOKE!!!!) I will give a quick example of an overwrite. I hold a large position in T (AT&T) a company that would be like holding PLDT or perhaps GLOBE here in the Philippines. It pays a sweet .52 cents/share dividend every three months. The exchange rates vary but let’s say about P25 /share every quarter. Now, you write a call option either on Friday for next week or the following Monday and sit back to wait for expiration. That premium is your to keep no matter what happens in the markets. You have just created a regular, weekly income!!! Option prices do increase with market volatility and will also jump around earnings release.

    Many folks who do not understand options think guys like me are high risk traders. Actually, options were created to help control risk. It was “high-rollers” who began to use options for high risk speculation that gave the product a bad reputation. For me and many others, option smooth out the bumps in the road and create a regular and dependable source of income. I have been at this for a whole lot of years and at 66 years of age, I have absolutely NO PLAN to ever stop unless the brain matter goes bad! I love this “business” and you can do it from anywhere in the world with a computer and internet connection. In fact, I am literally half way around the world from my former home on the US east coast and trading at night due to the 12 hour time difference. DO NOT waste your hard earned money on high price newsletters from the many GURUS out there. Purchase (or borrow from the library) half a dozen good books and STUDY. Perhaps join one or more of the FREE on-line groups dedicated to this type of trading.

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