What is generally the least risky type of investment?

Bonds are generally considered the least risky type of investment among the options provided because they are debt instruments that represent a loan made by an investor to a borrower (typically corporate or governmental). Generally, bonds, particularly government bonds, are backed by the issuer's promise to pay interest and repay the principal amount at maturity. This backing can provide a level of security, as default risk is usually lower for highly rated bonds, especially those issued by stable governments.

Additionally, the predictable stream of income from bonds through regular interest payments makes them a safer choice for conservative investors seeking to preserve their capital while earning a return. In contrast, the other investment types, such as stocks and speculative investments, tend to carry greater volatility and potential for loss, making them riskier in nature. Mutual funds might mitigate some risk due to diversification but still involve exposure to the riskier assets within the fund. Therefore, bonds stand out as a more stable choice for those prioritized safety over higher returns.