7 assets that are generally better and safer than cash, especially if you’re looking to preserve and grow wealth while managing risk and inflation:
1. High-Yield Savings Accounts
- Better than holding physical cash—still liquid and FDIC/central-bank insured.
- Yields 3–5% APY in many countries (vs. <1% for traditional savings).
- Great for emergency funds or short-term savings.
2. Certificates of Deposit (CDs) / Fixed Deposits
- Safe, fixed interest over a term (e.g., 6 months, 1 year).
- Insured up to national deposit limits.
- Higher interest than savings accounts, but with limited liquidity.
3. Government Bonds
- Very low risk when issued by stable governments.
- Pay regular interest (coupons) and are inflation-resistant in some cases (e.g., TIPS in the U.S.).
- Good for capital preservation.
4. Money Market Funds
- Invest in short-term, high-quality debt (treasury bills, etc.).
- Very liquid and low volatility.
- Safer than stocks but with slightly better returns than cash.
5. Gold or Precious Metals
- Long-term hedge against inflation and currency devaluation.
- Useful in times of economic or geopolitical uncertainty.
- Physical gold (bars/coins) or gold ETFs (like GLD).
6. Real Estate (Rental or REITs)
- Provides income + asset appreciation.
- More secure than stocks if bought well and held long-term.
- REITs (Real Estate Investment Trusts) are low-barrier options for small investors.
7. Inflation-Protected Bonds
- Bonds that adjust for inflation, such as:
- TIPS (US)
- ILBs (UK)
- Egypt Treasury Bonds tied to inflation (limited but emerging)
- Keep purchasing power intact while remaining low-risk.
Bonus: Diversified Low-Risk ETFs
- Include bond ETFs (e.g., AGG, BND) or dividend ETFs.
- Safer than stocks but offer consistent growth and low volatility.