3 minute read
What is a conservative investment style?
A conservative, or defensive, investment style is a low-medium risk investment strategy. This style aims to achieve capital security, provide income, and protect the capital invested.
To invest in this style, you will likely have a low tolerance for losses and risks and are investing for the short-term.
Generally, conservative investments are well-suited to cash, bonds, and fixed interest investments.
Suitable to help achieve financial goals such as:
- Saving for travel
- Buying a car
- Paying for a wedding
- Deposit on a house
- Build an emergency fund
Timeframe
Designed for investors with an investment timeframe of up to three years.
Asset allocation
Typically, the asset allocation for a conservative portfolio would consist of 80% defensive assets (cash, bonds, fixed interest) and 20% growth assets (infrastructure, listed property, shares).
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Things you should know
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