Risk Free Investment: which products are ideal for short-term investments?
The return on a financial investment is the premium we can get from our investment. The return is usually expressed in percentage terms on an annual basis and is a measure of the income generated by the investment in relation to the capital invested and the duration of the transaction.
The definition may change depending on the financial asset to which it refers:
In a proper investment, the return is directly proportional to the risk. Starting with a 'zero' risk yield (and by risk, in Italy, we mean three-month Treasury bonds) all yields greater than that zero risk yield will have a risk.
If everything doesn't go as planned, the return can be negative, and in that case, we will inevitably lose money.
To learn more about other performance-related concepts, we also recommend reading the following articles:
Remember that at any time, on MoneyController, you can calculate the performance of your portfolio thanks to the free tool we make available to you online.
Ideal financial instruments for short-term investments, i.e. for periods between 12 and 18 months, include savings accounts (or current accounts), timed deposits or fixed-term deposits with durations that can be shorter than 30 days, Italian treasury bills, government debt securities with a duration of 12 months or less or up to 18 months, multi-year treasury bills with a remaining duration of 12 to 18 months and government bonds from countries with a high credit rating (i.e. “creditworthiness”) such as “AAA”, especially in the euro zone, in order to avoid currency risks.
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