low-risk asset
/ˈloʊˈrɪsk ˈæsɪt/ · low.risk.as.set
noun
- An investment or security with a relatively low probability of default or loss, often used in portfolio management to balance risk and return. The financial advisor recommended allocating a portion of the portfolio to low-risk assets, such as government bonds, to minimize potential losses.
- A financial instrument or product with a low risk profile, often used in risk management strategies to reduce exposure to market volatility. The company's treasury department used low-risk assets to hedge against potential losses in the event of a market downturn.
Synonyms
conservative investmentsafe-haven assetlow-volatility securitystable investmentrisk-free assetlow-probability loss
Antonyms
Did you know? The concept of low-risk assets has been used by investors and financial institutions for centuries, dating back to the ancient Greeks, who used government bonds as a safe-haven investment.