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Characteristics of capital preservation fund
What are the characteristics of capital preservation funds?

(1) principal guarantee. Because the core feature of the capital preservation fund is that investors can get the principal guarantee when the fund expires, investors can avoid the loss of principal by investing in the capital preservation fund. In terms of risk characteristics, the investment risk of capital preservation fund is obviously lower than that of other funds, which is especially suitable for those investors who can't afford the loss of principal but want to participate in the securities market investment to a certain extent.

(2) semi-closed. The capital preservation fund stipulates a guarantee period, and the fund holder can only get the capital preservation guarantee if he holds the due capital preservation fund; Redemption during the guarantee period will not be guaranteed, and investors will not only bear the risk of fund net value fluctuation, but also pay a higher redemption fee. In addition, the subscription of funds is generally not accepted during the warranty period. This semi-closed nature makes the capital preservation fund more suitable for investors who aim at medium and long-term investment.

(3) Value-added potential. By investing in stocks or various financial derivatives, the capital preservation fund can ensure the safety of investors' principal and share the expected annualized expected return of the securities market. Compared with bank deposits or treasury bonds, capital preservation funds have higher appreciation potential, and have higher historical expected annualized expected returns while ensuring the principal return.