Portfolio insurance is a capital preservation strategy. Summarizes the classification and characteristics of portfolio insurance strategy. Capital preservation funds have accumulated rich experience in the application of portfolio insurance strategy. This paper expounds the development and application of overseas capital preservation funds, buy-and-hold strategic capital preservation funds and CPPI strategic capital preservation funds, as well as their initial application in China.

Portfolio uses stock index futures to protect the stock portfolio in case the stock market falls. Fund managers sell stock index futures when stocks depreciate, rather than actually selling stocks; If the stock market continues to fall, the portfolio manager will buy index futures again at a lower price and make up for the loss of the stock portfolio with profits. On "Black Monday", the market can't handle a large number of orders effectively, and everything is deadlocked except the disappearance of portfolio insurance.