Conservative Growth


DEFINITION of 'Conservative Growth'

An investment strategy that aims to grow invested capital over the long term. This strategy focuses on minimizing risk by making long-term investments in companies that show consistent growth over time. Conservative growth portfolios feature low asset turnover, or a high percentage of fixed assets on their balance sheets, and should employ a buy-and-hold investment philosophy.

BREAKING DOWN 'Conservative Growth'

Although investment funds, portfolio managers and investment advisors may claim to employ a conservative growth strategy, the actual assets held in some of these funds vary considerably. When investing in a fund that uses a conservative growth model, it is a good idea to perform regular checks on your portfolio's holdings to make sure they match the investment strategy the portfolio claims to use.

  1. Portfolio

    A grouping of financial assets such as stocks, bonds and cash ...
  2. Buy And Hold

    A passive investment strategy in which an investor buys stocks ...
  3. Growth Fund

    A diversified portfolio of stocks that has capital appreciation ...
  4. Blue-Chip Stock

    A blue-chip stock is the stock of a large, well-established and ...
  5. Fund Manager

    The person(s) resposible for implementing a fund's investing ...
  6. Long Term

    Holding an asset for an extended period of time. Depending on ...
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