A conservative investor is someone who wants his money to grow but not at the risk of losing his principal investment. A conservative investor will be willing to trade-off high returns for more stability. Conservative investing is also considered the preservation of capital strategy. Expanding on this, the term conservative investing refers to a strategy that attempts to preserve the value of a portfolio by investing in low-risk securities.

Conservative investors focus on building portfolios with safer investments that are unlikely to see large value fluctuations or volatility. Conservative investments are low risk, stable, positive and almost do not fluctuate. Generally, this kind of investing is generally used by beginners and retirees. This approach is also adopted by people close to retirement that use the money in their portfolio to pay for monthly living expenses.