Conservative Investing Strategy Definition

Forex Glossary


The term conservative investing pertains to a plan that tries to carry on the worth of a portfolio by purchasing low risk . A conservative investment portfolio could consist of bluechip stocks in addition to fixed income securities.


The key aim of a conservative investing plan is to protect against a loss at a portfolio’s price. Conservative investing is considered a preservation of funding plan. This strategy is often used by individuals which make use of the amount inside their own portfolio to cover yearly living costs, and trades away from the prospect for higher yields in exchange for lesser hazard.

A conservative portfolio could consist of rather minimal risk, fixedincome investments like Treasury Bills, money market accounts, and certificates of deposit. Equities held at the portfolio could consist of blue chip stocks, which may also be called largecap stocks. This tactic is ideal for people who have relatively very low risk tolerance scores.

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