Key Takeaways
- Defensive investment strategies prioritize capital preservation with modest growth potential.
- Common defensive investments include high-quality bonds and blue-chip stocks.
- Portfolio managers may use these strategies for risk-averse investors, like retirees.
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What Is a Defensive Investment Strategy?
A defensive investment strategy is a conservative method of portfolio allocation and management. It’s aimed at minimizing the risk of losing the principal. These strategies deliver protection first and modest growth second. They’re suitable for risk averse clients such as retirees who don’t have steady salaries.
High-quality short-term…
