What is an example of an investment found in Level 1 of the investment pyramid?

An investment considered to be in Level 1 of the investment pyramid typically signifies low risk and high liquidity. Government bonds exemplify this category because they are issued and backed by a national government, making them one of the safest forms of investment available. Investors can expect to receive a fixed interest rate over a defined period, and governments usually have a strong ability to repay their debts, reducing the probability of default.

Government bonds are appealing to conservative investors who prioritize capital preservation and are looking for stable returns, which aligns with the foundational nature of investments in Level 1. This level of the pyramid is usually characterized by investment options that are accessible and relatively stable, laying the groundwork for riskier investments found in higher levels of the pyramid, such as growth stocks or speculative stocks.