the biggest feature of the capital preservation fund is that its prospectus clearly stipulates the relevant guarantee clauses, that is, to provide investors with the guarantee of principal or income after meeting a certain holding period.

firstly, a capital preservation fund has a capital preservation period. Compared with domestic funds, the capital preservation period of overseas funds is longer. In the United States, the average capital preservation period is 7 years. In Hong Kong, in previous years, the capital preservation period was about 4-5 years. Recently, many capital preservation funds have a capital preservation period as long as 1 years, but they have the opportunity to be redeemed at the end of 4 or 5 years. Usually, investors must buy funds within a short period of time, and do not have the right to guarantee commitments before the expiration date of the capital preservation period. If the investor is in urgent need of funds before the maturity date and has to withdraw the investment of the capital preservation fund, its principal and income will not be guaranteed; If the market is not good at that time, early redemption may cause losses. Of course, the above situation may not happen, but investors need to consider it comprehensively.

secondly, the nature of "capital preservation" limits the rising space of fund income to some extent. The investment of capital preservation fund is usually divided into two parts: capital preservation assets and income assets. Overseas, "passive investment" is adopted to realize the guaranteed amount of capital preservation assets at maturity, and it is usually invested in government bonds such as zero coupon bond, bonds with high credit rating or large deposit certificates. The term is equivalent to the capital preservation period, and the maturity amount is the capital preservation amount. The income assets are "actively invested" in financial derivatives such as stocks or options and futures. Because of the high proportion of bonds in the capital preservation fund, there is a certain limit to the room for income increase. The larger the capital preservation assets, the smaller the proportion of active investment, and the smaller the space for additional income.

finally, we should carefully examine the cost of the capital preservation fund. Among them, whether the guarantee fee paid to the guarantor is paid by the fund assets or by the fund manager itself needs to be paid attention to.