Great question!
💼 What is Capital
Preservation?
Capital preservation means protecting the money
you already have — making sure you don’t lose your original
investment.
🧠 In simple words:
Keep your money safe, not necessarily grow it fast.
🏦 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.
📊 Investments for Capital
Preservation:
These are low-risk, stable, and focus on not
losing money:
- 🏦
Bank savings accounts
- 📄
Treasury bills (T-Bills) _ Like
- 💵
Money market funds _ Like
- 🧱
Short-term bond ETFs _ Like
🧑💼 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:
ការរក្សាទុន (Capital
Preservation)
មានន័យថា៖
ការពារសាច់ប្រាក់ដើមរបស់អ្នកឲ្យនៅសុវត្ថិភាព។
វាមានគោលបំណងធានាថា
អ្នកនឹងមិនបាត់បង់ប្រាក់ដើមនោះទេ។
ជាទូទៅ
អ្នកវិនិយោគជ្រើសរើសវត្ថុវិនិយោគដែលមានហានិភ័យទាប ដូចជា៖ គណនីសន្សំធនាគារ
ប័ណ្ណរដ្ឋ ឬមូលបត្រសន្សំសំចៃ។
Let me know if you want me to explain this with examples from Schwab or Cambodia.