1. A capital preservation fund is a capital preservation fund that provides a certain proportion of the invested principal within a certain period of time. The fund uses fruits or a very small proportion of assets to engage in high-risk investment, and most of the assets are engaged in fixed-income investment, so that no matter how the market of fund investment falls, it will never be lower than the guaranteed price, thus achieving the so-called "capital preservation" function.

2. internationally, the capital preservation fund can be divided into two types: guarantee fund and protection fund, in which the protection fund does not need a third party to provide guarantee. Generally speaking, capital preservation funds invest most of their assets in fixed-income bonds, so as to pay the investors' principal at the expiration of the fund term, and the remaining assets are about 15%-2% invested in tools such as stocks to improve the return potential.

3. The capital preservation fund is divided into two parts, one part is the protection pad, that is, the risk-free asset part. The size of risk-free assets is highly related to the investment period and market interest rate, and the other part is risk assets. The reduction of risk-free assets means the expansion of risk assets, which will make investment more flexible. For example, if the initial assets of a fund are 1 million yuan, if you buy bonds with 95, yuan, you can get 5, yuan of maturity income, then you can buy risky assets such as stocks with 5, yuan, even if these risky assets are completely lost, the fund as a whole will not lose money. In practical application, it is impossible to lose 1% because of stock assets. Therefore, the bond income can be amplified and invested in the stock market. In addition, the capital preservation fund also provides double guarantees, in addition to the above-mentioned investment strategy to ensure the relative safety of the principal, there are also guarantee companies to provide guarantees. The above strategy is the so-called CPPI strategy, that is, the fixed proportion portfolio insurance strategy, which is adopted by most capital preservation funds in China.