riskless investment

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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.
References in periodicals archive ?
The Risks: Although generally thought of as risk-free investments, each fixed-income asset has its own unique risks.
The main focus of the company is teaching about risk-free investments even with no cash, credit or experience.
2 percent, the best that can be said about these so-called risk-free investments is that they are not going down in value on an absolute basis.
When you talk about risk-free investments, most people will think of putting money into a bank or building society.
government obligations as the benchmark for risk-free investments, and we presume it still does.
Instead, accept the fact that risk-free investments are benchmarked off short-term U.
In the short run, lure of risk-free investments in government paper, coupled with high NPLs, has reduced eagerness of banks for extending private sector credit, it added.
The SEC alleges that Perez boasted a successful track record of providing risk-free investments in order to befriend new investors through word-of-mouth from previous investors.
If you can't afford to keep your money tied up, you should stick with risk-free investments.
The cash came from mainly elderly customers who were sucked into Price's supposedly risk-free investments.
Treasury bonds are among the most risk-free investments.
Through our membership in the CDARS network we are able to offer more peace of mind for investors from a risk perspective but with significantly more yield on their deposits compared to other risk-free investments such as US Treasuries.