Choosing a Portfolio: Conservative

When it comes to choosing a portfolio, there are a lot of options out there, appropriate to different levels of investor risk tolerance and therefore ranging from conservative to more aggressive. It can be confusing to tell which is the right one for you. To help you out, we have outlined some of the more common portfolio models.

Conservative Model Portfolio

Conservative model portfolios, or “capital preservation portfolios”, are designed for the investor interested in preserving and protecting principal value, capital. The objective of this portfolio is to grow it in such as way as to receive a reasonable rate of return with low volatility.  The conservative model portfolio ensures this low volatility by distributing the largest percent of the portfolio to low-risk securities like fixed-income.