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 ?
Al-Khail emphasized the importance of increasing citizens' awareness about saving and investment since sukuk is considered one of the best guaranteed and risk-free investment. He said the government's payment of zakat and income tax on sukuk issued by the Ministry of Finance will boost domestic and international investment in it.
It is also rated high on stability and safety with ICRA's MAAA (stable) and CRISIL's FAAA Stable rating making it one of the most risk-free investment options.
Treasuries, being the highest yielding risk-free investment available, and given the risk of a no-deal Brexit scenario and concerns about the fiscal responsibility of the Italian populist government with regard to the common currency's outlook.
This additional cash can be compensated with the processing fees and other fees that are involved in the refinancing process or you can even save or invest in some risk-free investment options.
The mean returns generated from the 11 Sharia mutual funds exceed the return of risk-free investment. The greater the value Sharpe Index, the better the performance of a Sharia mutual fund.
Savings in banks is still preferred by the household sector, because it is deemed a risk-free investment and grants a semi-stable return for long periods to help them organise their resources, he indicated.
At the meeting, Cllr Tim Sawdon (Con, Wainbody) said: "If this was a risk-free investment we would be very enthusiastic, as it is not a risk-free investment we are not very enthusiastic."
class="MsoNormalStill, the power sector has always operated on a risk-free investment model where investors are not responsible for fuel charges, currency fluctuations and inflation, inconveniences which are passed on to consumers.
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 compared to 4K/UHD, HD + HDR does appear to represent a relatively risk-free investment for Asian broadcasters, and if demonstrations at trade shows are an accurate indicator, the combination provides comparable quality to 4K/UHD by itself.