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 they don't give up the space of pursuing excess returns, so they are favored by investors, such as Hongkong, Singapore and Taiwan Province Province, when the stock market was depressed some time ago.

Capital preservation funds are very popular and have achieved great success in fund sales. In the bull market, because these products can share the gains brought by the stock market rise, their yield is not much worse than that of stock funds, so they also have strong market competitiveness. It can be said that both bull market and bear market capital preservation funds have strong selling points.