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Riskless Investment
(redirected from Risk Free Securities)

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Riskless Investment
An investment where the return is known with certainty. The certainty generally comes from a supreme amount of confidence in the issuer of the investment; for example, Treasury securities are considered riskless investments because the United States government is considered the best possible issuer. Critics contend that there is no such thing as a riskless investment because, in theory, even the US government could default. However, riskless investments have such a low level of risk that it may be ignored. Riskless investments usually have a low rate of return and, as a result, are exposed to inflation risk.

riskless investment
An investment with a certain rate of return and no chance of default. Although various investments (for example, savings accounts and certificates of deposit at insured institutions) meet these requirements, a Treasury bill is the most common example of a riskless investment.


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Category II [6 [less than or equal to] MvR [less than or equal to] 15] indicate that although possibility of extreme fall in prices cannot be witnessed but a careful diversification in the safe or risk free securities is required depending upon the investors risk appetite.
Investment Portfolio The US and European equity markets lost close to a third of their value during the six months as nervous investors dumped stocks for risk free securities such as Treasury bills.
 
 
 
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