What is a conservative investor?

Conservative investors tend to be older people who will need the bulk of their investment money soon to finance their retirement. Most conservative investors have a sizable investment portfolio from a lifetime of working and investing. A major market downturn can wipe out someone's life savings if it is all in high-risk investments.

Should you invest in conservative growth funds?

Many investors choose conservative growth funds as a core holding for their retirement investing. Conservative growth funds can be attractive to investors for a few different reasons. Many investors will use conservative growth funds as a core holding. They are also appealing to investors with a more conservative investing style.

What are conservative mutual funds?

Conservative mutual funds are low-risk funds that are designed to match or slightly outpace the average rate of inflation. A conservative portfolio is appropriate for an investor with a low risk tolerance and a time horizon from immediate to longer than 3 years.

What is the difference between conservative and aggressive investing?

While conservative investing focuses on protecting capital and producing income in some cases, aggressive investing aims to earn the highest returns. For some investors, that means a growth-focused investment portfolio, which could consist of investments that have a higher risk but a higher potential for reward (i.e., high returns).