Which type of investment typically offers the lowest risk?

Government bonds typically offer the lowest risk among the investment options listed. These are debt securities issued by a government to support public spending. Because they are backed by the government's credit and taxing power, they are generally considered a very safe investment, especially those issued by stable governments, such as U.S. Treasury bonds.

Investors in government bonds receive regular interest payments and get their principal back when the bonds mature, making them a stable source of income. Unlike stocks or cryptocurrencies, which can be highly volatile and subject to market fluctuations, government bonds provide a predictable return with much lower risk of loss.

The other investment options carry varying degrees of risk. Stocks in high-growth companies can offer significant returns but are notoriously volatile. Mutual funds that focus on international markets may expose investors to various risks, including currency risk and geopolitical instability. Cryptocurrencies are known for their extreme volatility and speculative nature, often resulting in substantial price swings in short periods. Thus, government bonds stand out as the safest choice for investors looking to minimize risk.