1.Exchange-Traded Funds:
Exchange-Traded Fund (ETFs) are a type of index fund security that can track a multitude of different assets. While ETFs are very similar to index funds, one large difference is that ETFs trade commission free.
ETFs are great for risk averse investors because they offer a large, professionally constructed, and dynamic group of assets. The diversification aspect makes the ETF less susceptible to firm-specific risk and much more dependent on market/industry movement.
2.Fixed Annuities:
A Fixed Annuity is a type of annuity that ears interest in exhchange for an initial lump sum. Great for the cautious investor, the principal amount invested is insured by the insurance company that offers the annuity policy.
The insurance company receives the principal then offers periodocial premium payments, usually equivalent to return that the company generates on its portfolio holdings. If you are a risk averse investor and want to insure stable fixed returns, fixed annuities are a great way to do it.
3.U.S. Government Bonds:
U.S. Governement bonds are debt securities issued by the federal governement to acquire lump sum capital to finance government spending. Government bonds are generally considered risk free (except with interest-rate risk, see here: http://www.investopedia.com/ask/answers/168.asp) and therefore can be very attractive to the risk averse investor.
Although the rate of returns are smaller, the interest on the payments become increasingly substantial with time and the investor is always guaranteed principle through the backing of the U.S. Federal Exchange.
Now that you have some ideas of what investment tools are best suited for the risk-adverse investor, check out a solution comparison to get more comparative detail.