What is generally considered the least risky investment?

The least risky investment is typically a Certificate of Deposit (CD). A CD is a time deposit offered by banks with a fixed interest rate and a specified maturity date. Because they are insured by the Federal Deposit Insurance Corporation (FDIC) up to applicable limits, CDs provide a high level of safety for investors, as the principal amount is protected from loss. This guaranteed return makes CDs a highly attractive choice for conservative investors or individuals who prefer stability over potential higher returns.

In contrast, corporate stocks can fluctuate significantly in value, exposing investors to higher risk depending on market conditions. Corporate bonds, while generally safer than stocks, still carry credit risk related to the issuing company's ability to make payments, as well as interest rate risk. Mutual funds, while diversifying investments across various assets, also carry market risk, and their returns can vary greatly based on market performance. Therefore, the nature of CDs as a secure, fixed-income investment makes them the least risky choice among the options provided.