First, principal guaranteed fund's guarantee of the principal has an investment period. Principal guaranteed fund usually has a hedging period, that is, the capital preservation period, which refers to the period for fund managers to provide hedging. For example, the recently issued Dongfang Anxin Income Capital Preservation Fund has a hedging period of three years. It is particularly important to note that if the fund share holders subscribe during the subscription period but redeem or convert the fund shares before the expiration of the fund hedging period and purchase the fund shares after the subscription period, the hedging clause is not applicable, that is to say, principal guaranteed fund does not provide the principal guarantee for the latter cases. Due to the limitation of investment period, investors who redeem in advance can not only guarantee the principal, but also have to pay the redemption fee.

Second, principal guaranteed fund's capital preservation is only for the principal, which does not guarantee a certain profit of the fund, nor does it guarantee the minimum income. It only promises to preserve the capital on the expiration date of the capital preservation period. Therefore, there is a possibility that the fund shares purchased by investors can only recover the principal by the maturity date of capital preservation, or they may be redeemed before the maturity date of capital preservation and suffer losses.

Third, principal guaranteed fund's commitment to capital preservation ratio is also different. According to the difference of risk degree of each fund, the capital preservation ratio can be lower than the principal, such as 9% of the principal, or equal to or higher than the principal. There are also some capital preservation funds whose capital preservation amount is higher than the principal, such as the recently issued Dongfang Anxin Income Capital Preservation Fund, whose capital preservation amount is the sum of the principal, the interest during the subscription period and the subscription fee.

fourthly, some principal guaranteed fund have a regular redemption mechanism. For example, the redemption opening day of some capital preservation funds is every Monday, unlike ordinary open-end funds, which can usually be redeemed on trading days.

Finally, investors need to pay attention to the differences in fund risk-return characteristics caused by the differences in asset allocation ratio in different principal guaranteed fund.