Capital preservation fund, also known as hedge strategy fund, originated from Guiding Opinions on Hedge Strategy Fund issued by China Securities Regulatory Commission. This kind of fund has good stability even in a bear market. Generally speaking, the capital preservation fund has a certain strategic cycle, usually three years. Capital preservation fund is a kind of fund to ensure the safety of principal at the expense of yield and liquidity.

Investors can only get the investment principal and a certain return after the investment expires.

The financial instruments that the capital preservation fund can invest in are: stocks, bonds and money market instruments (such as short-term bank deposits, treasury bills, acceptance bills, commercial bills, interbank deposit certificates, central bank bills, etc.). ), warrants, stock index futures and capital preservation funds mainly invest most of their funds in fixed-income investment instruments such as time deposit bonds and bills.

The capital preservation nature of the capital preservation fund limits the rising space of fund income to a certain extent.

In recent years, the capital preservation fund has gradually faded out of people's sight. The once capital preservation funds in the market have either been liquidated or transformed. Therefore, platforms that can sell funds on a commission basis, such as Alipay, do not have capital preservation funds.

If you are an investor with very low risk tolerance, you can learn about money funds and some bond funds, especially money funds, whose risk level is very close to that of capital preservation funds.

The risk coefficient of money fund is very low, and the loss of principal is extremely rare, but its rate of return is not high, which is suitable for living money management.

Since it is a capital preservation fund, it should be widely loved by the market. Why is the capital preservation fund being slowly "shot"?

Because the name of the capital preservation fund is misleading, in extreme cases, the capital preservation fund may not be able to protect the capital. In order to realize the capital preservation, there are hidden risks in the counter-guarantee design of the capital preservation fund. Once the capital preservation fund loses more, the registered capital of the fund company may not be enough. The risk is enormous. The capital preservation fund seems to be insurance, but it may actually bring great risks to the market.