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Defensive Investment Strategy

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Defensive Investment Strategy
A method of portfolio allocation and management aimed at minimizing the risk of losing principal. Defensive investors place a high percentage of their investable assets in bonds, cash equivalents, and stocks that are less volatile than average.

Notes:
A defensive strategy typically means a low risk/low return investment portfolio.


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At the conclusion of 1993, after evaluating both the potential impact of FASB 115 and expected changes in monetary policy on the fixed income markets a defensive investment strategy for 1994 was adopted and all securities owned at that time were classified as investments held to maturity.
 
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