Investment
Capital Preservation
Also known as: Principal Protection, Conservative Investing, Wealth Preservation
Investment strategy focused on protecting the original investment amount rather than maximizing growth.
Detailed Explanation
Capital Preservation prioritizes protecting the principal amount invested over generating high returns. This strategy becomes critical as investors approach their financial goals or during retirement when they cannot afford significant losses. Capital preservation typically involves conservative investments like high-grade debt funds, government securities, and liquid funds. It's often the final phase of glide path strategies where protecting accumulated wealth takes precedence over growth.