Can you lose money in a risk-free investment?

Typically, riskfree investments are considered to have minimal or negligible risk of loss, as they are backed by the government or other reliable financial institutions. However, it is important to note that all investments carry some level of risk and no investment can be considered completely riskfree. In some cases, factors such as inflation or changes in interest rates can affect the value of a riskfree investment, which may result in a loss of purchasing power or opportunity cost. Therefore, while the risk of losing money in a riskfree investment is low, it is not completely impossible.