Investment Fundamentals

Capital Preservation

Definition

What is Capital Preservation?

An approach that prioritises avoiding permanent loss of the amount invested.

Example in practice

Money needed for school fees next term may be placed in a low-volatility instrument for capital preservation.

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The original amount of money invested or lent, excluding later returns.

Money or other resources committed to produce income, growth, or another economic benefit.

An asset or commitment of money made with the expectation of future income, growth, or both.

Anything with economic value that can be owned or controlled.

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