Question

Which is the safest way to invest money?

a.) Invest in Stocks onlyB.) Invest in Mutual Funds onlyC.) Invest in More than One type of Investment?

Answer 1

If you want truly safe investments with high returns the first, crucial step is to define both

you mean very little risk of loss, then you probably want an FDIC-insured bank account. The returns won't be great by any means, but your risk of loss is minimal.

If you seek safe investments with high returns, the answer is to own stocks for their inflation-beating qualities, but not to own single shares.

Explanation:

Answer 2

The safest way to invest money is to invest in more than one type of investment.

The reason you diversify your investments, is to spread the risk of loss among many different choices. In other words, there is safety in numbers.