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Conservative Investing Strategy

Last updated 29th Nov 2022


The term conservative investing refers to a strategy that attempts to preserve the value of a portfolio by investing in low risk securities. A conservative investment portfolio would include blue chip stocks as well as fixed income securities.


The primary objective of a conservative investing strategy is to prevent a loss in a portfolio's value. Conservative investing is also considered a preservation of capital strategy. This approach is frequently used by retirees that use the money in their portfolio to pay for monthly living expenses, and trades off the opportunity for higher returns in exchange for lower risk.

A conservative portfolio would consist of very low risk, fixed-income investments such as Treasury Bills, money market accounts, and certificates of deposit. Equities held in the portfolio would include blue chip stocks, which are also known as large cap stocks. This strategy is well suited to individuals with relatively low risk tolerance scores.

Related Terms

risk of ruin, preservation of capital, 90 - 10 investment strategy, all equities strategy, capital growth strategy

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