Capital preservation

Preservation of Capital

A conservative investment strategy that attempts merely to avoid the loss of value. Retirees often prefer this strategy for their savings because the rate of return is designed only to keep up with inflation, ensuring that the value of their savings does not decrease over time. This often works in the short-term for pensioners, but using capital preservation as a long-term strategy often adds exposure to inflation risk rather than reduces it. Capital preservation strategists usually invest in fixed-income securities and other low-risk investments.

Capital preservation.

Capital preservation is a strategy for protecting the money you have available to invest by choosing insured accounts or fixed-income investments that promise return of principal.

The downside of capital preservation over the long term is that by avoiding the potential risks of equity investing, you exposure yourself to inflation risk.

That's the case because your investments are unlikely to increase enough in value to offset the gradual loss of purchasing power that's a result of even moderate inflation.

References in periodicals archive ?
NAFA ISLAMIC CAPITAL PRESERVATION PLAN-I###September 04, 2019###-###100.8715
NAFA Islamic Principal Protected Fund - II, NAFA Islamic Capital Preservation Plan - I, NAFA Islamic Capital Preservation Plan - II, NAFA Islamic Capital Preservation Plan - III, NAFA Active Allocation Riba Free Savings Fund, NAFA Islamic Income Fund and NAFA Income Fund.
Friday, 29-June-2018 NAFA Islamic Principal Protected Fund - II, NAFA Islamic Capital Preservation Plan - I, NAFA Islamic Capital Preservation Plan - II, NAFA Islamic Capital Preservation Plan - III, NAFA Active Allocation Riba Free Savings Fund, NAFA Islamic Income Fund and NAFA Income Fund.
The funds are designed for investors who wish for a retirement income, capital preservation and total returns.
Pakistan-based Meezan Bank has announced that it has launched the Meezan Capital Preservation Fund (MCPF).
For an annual fee of 0.60%, Nationwide Financial has begun offering owners of certain of its variable annuities Capital Preservation Plus Lifetime income, which guarantees return of principal during the accumulation/preservation period, and then withdrawals for life.
The measure also would specifically authorize $4,979,092 from the Garden State Historic Preservation Trust Fund for capital preservation or historic site management grants to be awarded by the New Jersey Historic Trust for projects in northern New Jersey.
When it comes to safeguarding what you've invested--the strategy financial professionals have dubbed "capital preservation"--keep one thing in mind: Guarantees of getting your money back come at a price.
The insurance business is one of the nation's largest employers and a primary engine for capital preservation and growth.
JS Islamic Capital Preservation Allocation Plan - 2###September 04, 2019###105.64###100.12###102.17
MEEZAN CAPITAL PRESERVATION PLAN-III###September 04, 2019###51.5038###0.0000###0.0000
JS Islamic Capital Preservation Allocation Plan - 2###September 03, 2019###105.52###100.01###102.06

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