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 ?
And to attract investment interest in stocks, a higher yield needs to be paid to the stock investor for the extra risk he's assuming compared to the virtual risk-free investment offered in US backed Treasuries.
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.
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.
These contributions are invested in government securities, ensuring a transparent, high-yielding and risk-free investment of members.
It is all very well to say that Islamic finance must invest in the 'real' economy but that is not the same as assuming that property, for example, is a risk-free investment.
Our MCM solution is a risk-free investment that allows operators to launch today and migrate to Rich Communication Services when ready as part of an overall network transformation strategy.
THERE is a popular misunderstanding that there is such a thing as a risk-free investment.
Because virtually no investment is 100 percent certain to provide expected return, investors discount anticipated future cash flows by a rate greater than the standard for risk-free investment --U.
The institutional VCs are gradually investing again, looking for that magical, risk-free investment that will deliver super gains in three years.
It is a remarkable show of confidence in Colin Montgomerie's team and any Power customers who backed Europe before midnight on Sunday will be thrilled to know it was a risk-free investment.