Great question!
๐ผ What is Capital
Preservation?
Capital preservation means protecting the money
you already have — making sure you don’t lose your original
investment.
๐ง In simple words:
Keep your money safe, not necessarily grow it fast.
๐ฆ Example:
Let’s say you invest $1,000.
If your goal is capital preservation:
- You
want to still have $1,000 or more later.
- You
avoid high-risk investments that could drop your money to $800 or $600.
๐ Investments for Capital
Preservation:
These are low-risk, stable, and focus on not
losing money:
- ๐ฆ
Bank savings accounts
- ๐
Treasury bills (T-Bills) _ Like
- ๐ต
Money market funds _ Like
- ๐งฑ
Short-term bond ETFs _ Like
๐ง๐ผ Who uses this
strategy?
- Retirees
or older people who can’t afford to lose money
- New
investors who want to protect their savings
- People
saving for short-term goals (like buying a house soon)
Khmer Translation:
แាแแแ្แាแុแ (Capital
Preservation)
แាแแ័แแា៖
แាแแាแแាแ
់แ្แាแ់แើแแแแ់แข្แแแฒ្แแៅแុแแ្แិแាแ។
แាแាแแោแแំแแแាแាแា
แข្แแแឹแแិแแាแ់แแ់แ្แាแ់แើแแោះแេ។
แាแូแៅ
แข្แแแិแិแោแแ្แើแแើแแแ្แុแិแិแោแแែแแាแแ ាแិแ័แแាแ แូแ
แា៖ แแแីแแ្แំแแាแាแ
แ័แ្แแแ្แ แฌแូแแแ្แแแ្แំแំแ
ៃ។
Let me know if you want me to explain this with examples from Schwab or Cambodia.