The word "absolute income" in absolute income fund is rather confusing. When many investors hear the word "absolute return", the first thing they think of is whether they will break even. In fact, absolute income fund is not the same as capital preservation fund, and there is no real capital preservation fund in Public Offering of Fund market.

Absolute income fund does not mean that the fund will generate positive income every day, but puts risk control in the first place. Under the premise of strictly controlling risks and retracement, the fund's net value grew moderately. In the short term, absolute income funds may also lose money, but overall, the probability of positive income is very high, especially under the action of time.

The "absolute income" in the absolute income fund is compared with the relative income.

Absolute income generally compares a fixed income value and pursues the stability of income. Therefore, non-income funds generally adopt a neutral strategy and invest through hedging, so that the overall portfolio does not bear market systemic risks.

Relative income generally refers to the part where the income exceeds the performance benchmark, and the pursuit exceeds the performance benchmark, and the decline is less than the performance benchmark when it falls.

Absolute return strategy fund can bring better investment experience to investors, and it is also a very suitable fund product for long-term capital planning, especially for investors who are unwilling to bear the risk of market fluctuation, pay more attention to the safety and certainty of investment income, and hope to win steadily.

Therefore, absolute income fund is a product with stable income and low risk.