Conservative Investing

What is 'Conservative Investing'

Conservative investing is an investing strategy that seeks to preserve an investment portfolio's value by investing in lower risk securities such as fixed-income and money market securities, and often blue-chip or large-cap equities.

BREAKING DOWN 'Conservative Investing'

Conservative investors have risk tolerances ranging from low to moderate. Those who have low risk tolerance are often extremely uncomfortable with the stock market and wish to avoid it entirely. However, although this strategy may protect against inflation, it will not earn any value over time.

Capital preservation and current income are popular conservative investing strategies.

RELATED TERMS
  1. Cash Plus Fund

    A type of fund, commonly found in Australia, that is formulated ...
  2. Conservative Growth

    An investment strategy that aims to grow invested capital over ...
  3. Balanced Investment Strategy

    A portfolio allocation and management method aimed at balancing ...
  4. Preservation Of Capital

    An investment strategy where the primary goal is to preserve ...
  5. Current Income

    The investment objective for a moderately conservative portfolio ...
  6. Fixed Income

    A type of investing or budgeting style for which real return ...
Related Articles
  1. Investing Basics

    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. Investing Basics

    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.
  3. Investing

    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?
  4. Investing Basics

    Asset Allocation Models: Comparing 3 Traditional Strategies

    Learn about the three most common asset allocation models: conservative, moderate and aggressive.
  5. Options & Futures

    What Is Your Risk Tolerance?

    Forget the cliches and uncover how much volatility you can really stand.
  6. Investing Basics

    What's a Blue-Chip Stock?

    A blue-chip stock is stock of a company that has been operating successfully for many years and has a market capitalization in the billions. Most blue-chip companies are leaders in their industry. ...
  7. Financial Advisors

    When Couples Have Different Risk Appetites

    Communication, compromise and frequent monitoring will lead to successful investing for spouses with different risk tolerances.
  8. Investing Basics

    Understanding Risk Tolerance

    Risk tolerance measures the degree to which an investor will accept risk in exchange for a better return.
  9. Investing

    How to Change Your Retirement Plan

    Retirement is one of those things you plan for but it can't be etched in stone. From asset allocation to risk tolerance, it must change when life happens.
  10. Fundamental Analysis

    How to Manage Risk in Your Personal Portfolio

    To best manage your portfolio, first determine your risk tolerance.
RELATED FAQS
  1. How do I determine what percentage of my portfolio to invest in blue chip stock?

    Learn how to determine what percentage of a portfolio should be invested in blue-chip stocks. Understand what strategy is ... Read Answer >>
  2. 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 >>
  3. What are the drawbacks of a small investor buying blue-chip stocks?

    Understand what a blue-chip stock is and learn about the drawbacks a small investor might face when investing in blue-chip ... Read Answer >>
  4. Have hedge funds eroded market opportunities?

    Learn why there is still plenty of opportunity for investors even though hedge funds have grown substantially. Read about ... Read Answer >>
  5. What is the benefit of investing in blue chip stocks?

    Learn what blue-chip stocks are, what attributes blue-chip stocks have and how investors can benefit from an investment in ... Read Answer >>
  6. What are common advantages of investing in large cap stocks?

Hot Definitions
  1. Labor Market

    The labor market refers to the supply and demand for labor, in which employees provide the supply and employers the demand. ...
  2. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  3. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  4. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  5. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  6. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
Trading Center