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.

RELATED TERMS
  1. Conservative Investing

    An investing strategy that seeks to preserve an investment portfolio's ...
  2. Portfolio Investment

    A holding of an asset in a portfolio. A portfolio investment ...
  3. Capital Growth Strategy

    An asset allocation strategy that seeks to maximize capital appreciation, ...
  4. Capital Growth

    The increase in value of an asset or investment over time. It ...
  5. Balanced Investment Strategy

    A portfolio allocation and management method aimed at balancing ...
  6. Turnover Ratio

    The percentage of a mutual fund or other investment vehicle's ...
Related Articles
  1. Managing Wealth

    How To Be A Conservative Investor

    It may not be the most exciting path to take in the investing world, but conservative investing is an extremely safe bet.
  2. Trading

    Invest Like A Pro

    By following the strategies of the pros, even a beginner can learn to invest like an expert.
  3. Managing Wealth

    Achieving Optimal Asset Allocation

    Minimizing risk while maximizing return is any investor's prime goal. The right mix of securities is the key to achieving your optimal asset allocation.
  4. Managing Wealth

    Portfolio Growth Strategies

    There are many ways to grow a portfolio, and the best approach for a given investor will depend upon various factors.
  5. Investing

    The Key To High Returns Is A Disciplined Strategy

    Learn about different investment strategies and how to pick the right one for you.
  6. Managing Wealth

    Using Time Horizons In Investing

    Time-horizon investing is all about planning. You need to think about your goals and select investments based on the amount of time you have until the goal must be funded.
  7. Managing Wealth

    Understanding Portfolio Investment

    Portfolio investment involves buying securities with the expectation of earning a return on them.
  8. Retirement

    How to Tell if You're Investing Too Conservatively

    Investing is a balance between growing and preserving your money. It's understandable to want to be conservative, but what about being too conservative?
  9. Managing Wealth

    Choose Your Own Asset Allocation Adventure

    There are many strategies to help balance your portfolio. Here are a few to get you started.
  10. Investing

    Growth Investing: 3 Tips to Consider

    Learn the basics of growth investing, and discover three tips for avoiding the risk of losing money while employing a growth investment strategy.
RELATED FAQS
  1. How should I allocate my ETF portfolio?

    I invest strictly in ETFs and my portfolio contain... Read Answer >>
  2. What proportion of my overall investments should be in securities?

    Understand the various factors that should be considered by individuals in regard to investment portfolio management and ... Read Answer >>
  3. How do hedge funds determine what assets to own?

    Learn about the various types of investments that hedge fund managers use, and explore basic hedge fund management trading ... Read Answer >>
  4. What percentage of a diversified portfolio should large cap stocks comprise?

    Learn more about achieving optimal diversification of an investment portfolio, and specifically about the percentage of large-cap ... Read Answer >>
  5. When is it useful to look at a company's fixed asset turnover ratio?

    Understand when it is useful to look at a company's fixed asset turnover ratio, and learn which industries are best suited ... Read Answer >>
  6. Why should investors pick less risky investments as they approach retirement?

    Investors must decide for themselves what the term "risky investment" means to them. At age 25, you may feel comfortable ... Read Answer >>
Hot Definitions
  1. AAA

    The highest possible rating assigned to the bonds of an issuer by credit rating agencies. An issuer that is rated AAA has ...
  2. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  3. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  4. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  5. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  6. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
Trading Center