capital preservation
Guarding principal amount
Capital preservation is an investment strategy prioritizing the protection of principal over growth.
Investors focused on capital preservation accept lower returns to minimize risk of losing their original investment: Retirees often shift toward capital preservation as they age.
The approach favors stable assets like treasury bonds and money market funds over volatile equities.
- retireesPeople finished working permanently
- treasury bondsGovernment-issued debt securities
- risk aversionPreference for certainty
- asset allocationDistributing investments strategically
- hedgingNoncommittal maneuvering
risk management · money market funds · rainy day fund · inflation adjustment · diversification · savings accounts · downside · municipal bonds · safe haven · annuities · government securities · fiduciaries · laddering · contingency planning · economic stability · principal · financial solvency · fixed
- financial planningfinancial planning, budget, financial plan, retirement plan, financial goals
- investingstocks, stock, bonds, investing, investor
- risk protectioninsurance, hedging, diversification, stop-loss, safe haven
- money managementsaving, savings, budgeting, budget planning, expense tracking
- savingssavings account, piggy bank, online savings, savings bonds, savings plan
- risk tolerancerisk tolerance, risk appetite, risk averse, risk seeking, conservative
capital preservationgrowth investing
Buying stocks expecting rapid appreciation
speculation · venture capital · risk-on · swing for the fences · day trading
capital preservationcapital growth
Increase in asset value
growth investing · profit maximization · wealth accumulation · outperformance · total return