No. of Recommendations: 17
"no risk tolerance" is impossible. You can choose from various types of risk, but you cannot say "no risk".
Credit risk means a bond issued by a company that defaults, or a stock in a company that goes belly up.
Market risk means in the future the market does not value your investment as highly as it does today.
Opportunity risk means that you buy something perfectly "safe" and then don't have the money available to invest in something really great.
Inflation risk means that something you might have bought at a given price today costs more next year. Or it can be involved in you buying something that pays you a guaranteed rate and the value of your investement not keeping up with inflation.
Interest rate risk means that rising rates cause a debt instrument you own to be worth less in the future than it is today.

You cannot avoid risk. So give thought to what type of risk you are willing to accept. If you have a chunk of money to invest, to say you cannot play the game isn't acceptable. If you stash the money under the mattress, assuming you don't get robbed, you will still lose money to inflation.

Best wishes, Chris
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