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What is the difference between a risk-free investment and a low-risk investment?
Curious about risk-free investment
A riskfree investment is an investment where the possibility of losing money is virtually zero. Examples of riskfree investments include government bonds and fixed deposits with a bank. On the other hand, a lowrisk investment has a low likelihood of losing money, but there is still some risk involved. Examples of lowrisk investments include bluechip stocks, mutual funds, and index funds. The difference between the two is that a riskfree investment is virtually guaranteed to not lose money, while a lowrisk investment has a higher potential for return, but also carries some risk of loss.
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