Finance English
Investment

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.

Certification Exam Relevance

CFAACCAFRM

Who Needs to Know This Term?

  • Financial Analysts
  • Bankers
  • Traders

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Frequently Asked Questions

What is Capital Preservation?

An investment objective focused on preventing loss of principal, prioritizing safety and liquidity over return.

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