What is Capital Preservation
Capital preservation is an investment strategy aimed at safeguarding the principal amount in a portfolio, ensuring that the initial investment is not lost. This approach is particularly important for family offices seeking to maintain wealth across generations by minimizing risk and focusing on stable, low-volatility assets.
Strategies for Capital Preservation
Common strategies for capital preservation include investing in government bonds, high-quality corporate bonds, money market funds, and other low-risk securities. These investments are chosen for their ability to provide steady returns while protecting the principal from market fluctuations.
