Principal guaranteed fund has been popular abroad for many years, because no matter how many markets there are or how empty they are, it will not affect our daily life or our original plans. What are the operation methods of the capital preservation fund organized by Bian Xiao? Welcome to read!

What are the operation methods in the capital preservation fund?

Asset allocation: Through reasonable asset allocation, the capital preservation fund disperses funds into various assets to reduce investment risks. There is usually a high proportion of fixed income assets, such as bonds and money market instruments, to protect the principal.

Risk control: The capital preservation fund adopts strict risk control measures in investment decision. The fund manager will ensure that the overall risk of the portfolio is within the controllable range according to the market conditions and investment objectives, and set a threshold. When it exceeds the set risk limit, it will adjust the investment portfolio to reduce the risk.

Arbitrage and hedging strategy: principal guaranteed fund often adopts arbitrage and hedging strategy to gain income by trading and chasing the price difference in the market, thus ensuring the safety of the principal.

Flexible trading strategy: Capital preservation funds usually adopt flexible trading strategies, including timely adjustment of investment portfolio according to market conditions and trading operations to obtain better risk control and income.

What are the advantages of capital preservation funds?

Capital preservation: The most important advantage is that the capital preservation fund aims to protect the investment principal from greater losses. This provides a relatively safe investment choice for conservative investors.

Investment flexibility: Capital preservation funds can usually provide more flexible investment strategies and trading strategies to adapt to different market conditions and investment objectives.

Risk control: the capital preservation fund pays attention to risk control and reduces risks through strict investment restrictions and risk management strategies.

Comprehensive income: Although principal guaranteed fund's main goal is to protect capital, it can still pursue certain investment income, especially compared with traditional low-risk assets such as deposits and bonds, which provides more attractive return opportunities.

What is a capital preservation fund?

The capital preservation fund has achieved "capital preservation" at the expense of possible income, which can show good stability in the bear market of the stock market. In the capital preservation fund, most of the principal is invested in fixed-income investment instruments, such as time deposits, bonds, coupons and so on. There is usually a guarantee period (the lock-up period set by the capital preservation fund is generally 3 years in China and even 7- 12 years abroad). After the warranty period, you can get back the original investment principal, but if you redeem it in advance, you will not enjoy the preferential treatment. In the uncertain stock market, capital preservation fund is a good choice for investors with weak risk tolerance. Principal guaranteed fund usually aims at preserving capital and increasing value, and mainly invests in low-risk, high-dividend, high-yield securities to ensure that investors can get the principal plus income at maturity, and generally get a return higher than the interest on bank deposits during the same period. Capital preservation funds generally stipulate a certain closed period, so they belong to "semi-closed" open-end funds.

Selection principle of capital preservation fund

Capital preservation amount: the capital preservation amount is negatively correlated with investment income, that is, a high capital preservation amount means a low investment income amount; On the other hand, if the capital preservation amount is low, the probability of obtaining higher investment income is also high, but the relative risk is also amplified. Investors are advised to choose which capital preservation fund to invest in according to their risk tolerance.

Fund manager: High-quality professional fund management companies and investment research teams are the guarantee for the good operation of fund investment and the key factor to determine the profitability of capital preservation funds. When choosing a capital preservation fund, you should carefully read the information about the fund management company and company executives in the prospectus of the capital preservation fund, as well as the professional background and working experience of the proposed fund manager.

Timing of entering the market: the capital preservation fund has good resilience and can effectively avoid systemic risks in the stock market. Capital preservation fund is undoubtedly a better choice when the stock market is in a downturn or shock and the investment income cannot be well guaranteed.

Rate. The expenses of the capital preservation fund mainly include subscription/subscription fees, redemption fees, management fees and custody fees. Generally speaking, the rate is often related to the duration of the fund. The later the redemption, the lower the rate.

The method of realizing capital preservation of capital preservation fund

Assuming that the initial scale of a capital preservation fund is 65.438+0 billion yuan, it is ultimately necessary to ensure that the assets after three years are not less than 65.438+0.065438+0 billion yuan. In order to achieve the purpose of capital preservation, the fund manager will calculate how many assets need to be taken out according to the interest rate of three-year time deposits in the market.

At present, the three-year fixed interest rate is 4%. According to this income level, if the assets after three years reach1010 million yuan, only 898 million yuan will be needed to achieve the purpose of capital preservation. The extra/kloc-0.02 million yuan can be used to invest in high-risk assets such as stocks. Even if all these assets are lost, the purpose of capital preservation can be achieved.

In addition, the fund company will also introduce a guarantee mechanism, so that the initial principal and subscription fee will be returned to investors at the end of the capital preservation period.