Investment risk
Investment risk

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Investment risk

3.2 Maturity

The maturity of an investment is the date when the investor is contractually entitled to demand repayment of the investment and the associated return. Some investments (such as company shares, as discussed in Section 3.1) actually have no contractual maturity. Others – such as demand deposits at banks – are subject to contractual repayment at any time if the investor demands it. If any of the other risk factors discussed below apply to an investment, those risks will tend to increase with length of time to maturity.

Figure 1
Figure 1

© John Glashan


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