In the market, many investors purchase capital-preserving funds for the purpose of "capital preservation."

It is considered safe to purchase such a fund to at least protect the principal invested.

So, can capital guaranteed funds really protect capital? Can capital guaranteed funds really protect capital? Capital guaranteed funds can protect capital, but there are certain restrictions.

Most capital-guaranteed funds require investors to purchase within the issuance period and hold them for 3 years before they can obtain 100% principal safety guarantee.

In short, as long as investors redeem within 3 years, they will also need to bear the risk fluctuations of the fund's rise and fall, and there will also be higher handling fees.

Therefore, capital-guaranteed funds are not suitable for investors who want short-term profits or whose funds are not stable.

In addition, capital-guaranteed funds only protect the principal and do not guarantee expected returns, and they also involve certain risks.

And after the capital guarantee period expires, investors will most likely only be able to get back their costs.

Compared with other financial products, the return of capital-guaranteed funds is not particularly high, and according to the difference in the risk level of each fund, the capital-guaranteed ratio of its commitment to principal will also be different. The capital-guaranteed ratio of the capital-guaranteed fund can be greater or less than the principal, so

It is also impossible to achieve capital preservation.

All in all, capital-guaranteed funds can protect capital but there are many restrictions. Investors need to carefully consider whether to invest.