Myth 2: You can break even at any time. Only when investors hold sufficient fund products during the hedging period can they ensure the safety of the principal, and they cannot hope to achieve the purpose of capital preservation under any circumstances. Investors should have an investment plan for at least three years.
Myth 3: Capital preservation funds can continue to protect capital. Due to the change of the market environment, the capital preservation foundation will be transformed, that is, it will be transformed into another kind of fund products after maturity. For example, Tiantong Capital Protection and Value-added Fund, which was established on September 28th, 2004, will be converted into Tiantong Bond Fund upon expiration.
Myth 4: A fund management company can only manage one capital preservation fund product. For example, southern fund Management Company issued several capital preservation fund products, namely Southern Hedge Value-added Fund and Southern Hengyuan Capital Preservation Fund.
Myth 5: Guaranteeing capital is equal to guaranteeing the expected annualized income. The expected annualized return on investment of principal guaranteed fund products involves many factors such as market environment. The expected annualized income of capital preservation fund products operating in different environments will be quite different. For example, the Cathay Pacific Golden Elephant Capital Protection Fund, which was established in June, 2004 165438+ 10, realized the expected annualized income of 97. 14% in the first insurance period, while the other capital protection fund was established in August, 2007 15.
Capital preservation fund products are suitable for all investors. Then, investors' funds need to start from the following aspects in order to get out of the misunderstanding. Any type of fund product has its suitable investment target. Because of the function of capital preservation, investors can guarantee the safety of principal as long as they hold hedging, so the capital preservation fund is a low-risk product, which is more suitable for the elderly or investors with low risk tolerance. However, due to the design of capital preservation, capital preservation funds usually invest most of their funds in fixed expected annualized income, and rarely invest in other investment instruments with higher expected annualized income, such as stock financial derivatives, which will limit the expected annualized income of capital preservation fund products to a certain extent and is not suitable for radical investors.