What is Capital Preservation?
Capital Preservation An investment objective focused on preventing loss of principal, prioritizing safety and liquidity over return.
Source: CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework
How is “Capital Preservation” Used in Practice?
Money market funds are structured for capital preservation, offering low risk but limited returns.
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Who Needs to Know This Term?
- Financial Analysts
- Bankers
- Traders
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What is Capital Preservation?
An investment objective focused on preventing loss of principal, prioritizing safety and liquidity over return.
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