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conservative investing

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Financial Dictionary

Conservative Investing

An investing strategy that seeks to preserve 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.

Investopedia Commentary

Conservative investors have risk tolerances ranging from low to moderate. Those who have low risk tolerance are often extremely uncomfortable with the stock market and wish to avoid it entirely. However, although this strategy may protect against inflation, it will not earn any value over time.

Capital preservation and current income are popular conservative investing strategies.

Related Links

Investing 101: A Tutorial for Beginner Investors
A Guide To Portfolio Construction
Achieving Optimal Asset Allocation

See also: Agressive Investing Strategy, Current Income, Inflationary Risk, Nominal Value, Preservation of Capital, Real Return

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