A conservative investor would not typically invest directly in the share market. Shares are volatile investments in that their value often moves up and down on a daily basis.

Conservative investors seek little-to-no capital depreciation in their investment over the short and long term, and do not have in-depth knowledge of the finance markets. They are comfortable with investments focussed on cash that generate regular income while ensuring their value does not decrease.

A conservative investor might opt for a managed fund of a low (to nil) risk nature with majority holdings in fixed interest and cash.

By investing in managed funds the conservative investor is allowing a team of appointed experts to manage their holding in investments chosen by them according to fund guidelines.
Direct investments

• Fixed interest and cash

• Conservative or balanced
• 75-80% of funds would typically be invested in conservative assets
• Remaining funds would be directed towards property and/or shares