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 ?
This is due to the fact that the EGP (Egyptian Pound) was being devalued against USD and there was little risk free investment to consider.
U will assist farmers in setting up ostrich farms by providing complete training, technical assistance, consultancy and medication to ensure a safe and risk free investment.
Because a completely risk free investment would be one which would repay at a future date, an amount equivalent in purchasing power to that represented by the amount originally invested.
Of course the investor can't expect a risk free investment, but the more the plan demonstrates that management can handle the risks present in the business and marketplace, the more successful it will become.
Now we have complaints in the press that the money does not reach those who need it, with the largest farms still receiving the greatest payments ( the Commission has been trying for some time, without success, to deal with that by introducing a cap (the Commissioner has promised to try again as part of the health check) ( and complaints that speculators are buying entitlements to single payments, registering themselves as occupiers of unproductive scrub land and looking forward to a better return on their risk free investment than the financial markets can deliver.
To arrive at a comparison between costs and revenues it will suffice to compare an investment in one notional high demand item against a risk free investment returning 8% per annum.
He specializes in crafting creative deals and risk free investments.
This is not to say that there is no place for keeping money in cash based risk free investments, on the contrary I believe that everyone should have some money in cash in case of emergency and for those saving in the short term there may be nothing more suitable.
With interest rates on risk free investments as low as they are, an investment opportunity like this will attract overwhelming attention from the market today," said Massey Knakal Chairman Bob Knakal, who is marketing the property with vice chairman John Ciraulo.
We know all too well about the catastrophic consequences of consulting 'evidence' of unknown reliability on problems as diverse as the existence of weapons of mass destruction and the possibility of risk free investments," he added.
As a result, the potential universe of buyers in the Tier-2 credit market, over-crowded by credit downgrades, has been reduced as many migrated to near risk free investments.
He specializes in single family houses and risk free investments.

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