Conservative investing is a type of investing that emphasizes capital preservation overgrowth or market returns. Conservative investing, on the other hand, aims to safeguard the value of an investment portfolio by investing in lower-risk assets such as blue-chip stocks, fixed-income securities, the money market, and cash or cash equivalents.
In a conservative investment strategy, debt securities and cash equivalents would often make up more than 50% of a portfolio, rather than stocks or other riskier assets. The terms conservative and aggressive investment can be used interchangeably.
Conservative investing is an investing strategy that priorities the preservation of capital over market returns. Conservative investing seeks to protect 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. In a conservative investing strategy a full half or more of the portfolio will generally be held in debt securities rather than equities.