Preservation of Capital

Preservation of Capital

An investment strategy whose primary goal is to prevent the loss of an investment's total value.

Notes:

For investors using the capital preservation strategy to achieve their goal, they must ensure their portfolio is producing a return that is at least equal to inflation. Individuals who are close to or within their retirement years often prefer these portfolio strategies so they can ensure their life savings are not lost or reduced for any reason other than their own withdrawals - which they need for living expenses.

See also: Conservative Investing, Inflation, Risk, Risk Averse, Safekeeping