Capital preservation is a financial strategy employed by investors who prioritize the safety of their principal investments over high returns. The primary goal is to protect the original amount of money invested by minimizing risks associated with market volatility and inflation, which can erode purchasing power. This strategy often involves investing in low-risk assets such as treasury bills, money market funds, and high-quality bonds, where the primary aim is to avoid any capital loss. In some contexts, capital preservation may also refer to structured financial products or investment vehicles specifically designed to offer a guaranteed return of principal after a certain period, regardless of market performance.