What is the focus of a conservative investment strategy?

A conservative investment strategy centers on preserving capital and minimizing risk. This approach is typically favored by individuals who are closer to retirement or have a low tolerance for market volatility. The primary goal is to protect the principal amount invested, ensuring that the investor maintains their wealth rather than seeking to achieve the highest possible returns. Investments are often allocated toward low-risk options like bonds, savings accounts, or stable blue-chip stocks, which provide a steady return without significant fluctuations in value.

By focusing on capital preservation, investors utilizing this strategy aim to safeguard their money against potential losses from market downturns. These strategies align well with investors who prioritize financial security over aggressive growth, making it a suitable choice for those who need their savings to be accessible or stable in the near term.