Capital preservation fund refers to a fund in which investors can recover at least a certain proportion of the agreed investment principal when the investment contract expires. The investment target in the capital preservation fund is usually the investment tool with the lowest risk and relatively less income. Capital preservation fund is a kind of income-oriented mutual fund, which guarantees investors' original investment from any loss. Mainly used by insurance companies to invest in fixed-income varieties. In essence, the capital preservation fund is a balanced fund, which mainly realizes the goal of maintaining and increasing the value of the fund through the strategic allocation of fixed-income assets (mainly bonds), stocks and derivative financial products (options) in the portfolio. This kind of fund products have low risk and do not give up the space of pursuing excess returns.

At present, the capital preservation funds introduced in China are: Cathay Pacific Jin Lu Capital Preservation Hybrid, Bank of Communications Capital Preservation Hybrid, Jinyuan Lian Bi Growth Enterprise Market Capital Preservation Hybrid, Southern Hengyuan Capital Preservation Hybrid, Southern Hedging Value-added Hybrid, and Yin Hua Capital Preservation Value-added Hybrid.