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 ?
State Bank of Pakistan should make regulations as such that the banks are compelled to finance industry and reduce risk-free investment in government securities.
GBIB strives to provide cutting-edge global information for blockchain investors, connect them with top experts, provide risk-free investment opportunities for them, and develop into a boutique investment bank in the blockchain industry.
These predictions come packaged in the usual caveats about short term volatility coupled with an overall understanding that cryptocurrency is an experiment, not a risk-free investment opportunity.
When considering your options, bear in mind what is known as the "risk premium," which is the maximum level of risk acceptable to shift from a risk-free investment like banks to other higher-risk alternatives that offer higher returns, Abdel-Fattah adds.
Both are likely to avoid any effort to restart the Israeli-Palestinian peace process until some change in the situation on the ground makes doing so look like a productive and relatively risk-free investment of political capital.
3) A risk-averse individual with an average life expectancy would choose a risk-free investment and thus not purchase an annuity at all.
The truth is: there is no such thing as a risk-free investment choice; but there are strategies to avoid loss - and part of this strategy is diversification.
Before the recent sanctions were introduced, Russian companies and some Russian tycoons considered putting money on their accounts in Swiss banks as an absolute risk-free investment.
President of the Fonds de Compensation Robert Kieffer commented that the fund is not an ethics committee, but that it has been charged with managing the social security money and ensuring its stability, including risk-free investment.
With the current risk-free investment offering 1-2 per cent at best, a target of 10 per cent pa (i.
Treasury bills are considered a nearly risk-free investment.
He considered it as the best channel to inject savings of small investors into government backed securities, which were also known as risk-free investment.