Glossary - Capital preservation

Description

An investment strategy focused on protecting the original amount of money invested (the principal) from loss, rather than seeking high returns. It is often prioritised by risk-averse investors or those approaching retirement, using assets such as cash, government bonds, or money market instruments.

Alternate Names

  • Preservation of capital
  • Capital safety
  • Capital protection
  • Principal protection
  • Safe‐capital strategy
  • Defensive capital strategy