Conservative investing

Conservative investing,

Definition of Conservative investing:

  1. Conservative investors have risk tolerances ranging from low to moderate. As such, a conservative investment portfolio will have a large amount of low-risk, fixed-income investments and a small smattering of high-quality stocks or funds. Although a conservative investing strategy may protect against inflation, it may not earn significant returns over time when compared to more aggressive strategies. Investors are often encouraged to turn to conservative investing as they near retirement age regardless of individual risk tolerance.

  2. Conservative investing is an investing strategy that prioritizes the preservation of capital over market returns. Conservative investing seeks to protect an investment portfolio's value by investing in lower-risk securities such as fixed-income and money market securities, and often blue-chip or large-cap equities. In a conservative investing strategy a full half or more of the portfolio will generally be held in debt securities rather than equities.

  3. An investment strategy that emphasizes capital preservation and risk minimization through a diversified and balanced portfolio of low risk investments such as government and high quality corporate bonds, large cap and dividend-paying stocks, and cash vehicles such as CDs and money market funds.

Meaning of Conservative investing & Conservative investing Definition