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What is a capital preservation and value-added fund?

a capital preservation and value-added fund refers to a fund that seeks to increase its value while ensuring a certain degree of security of its principal, and mainly invests in relatively safe wealth management products such as bonds.

Capital preservation and value-added fund is a kind of fund. Among all the existing fund products, the investment risk of capital preservation fund is the lowest, because capital preservation fund ensures that investors can get the principal guarantee when they hold the fund. Its main features are:

1. Guarantee the security of the principal. Generally, the capital preservation fund indicates the security degree of the principal in the fund contract, and the capital preservation degree includes partially guaranteeing the security of the principal, such as guaranteeing 9% of the principal;

2. Ensure the safety of the principal for a period of time.