Capital preservation fund is an investment tool, which aims to ensure that investors' principal will not be lost due to market fluctuations by investing in a variety of financial products. The investment portfolio of capital preservation funds usually includes low-risk fixed-income products, such as treasury bonds, bank deposits and bonds.

Current situation of capital preservation fund:

1. Basic principles:

The basic principle of capital preservation fund is that through effective asset allocation and risk control strategy, investors can at least get the full return of investment principal at the end of the investment period. Such funds usually use capital preservation agreements or hedging strategies to reduce risks and ensure that the principal is not lost.

2. Diversity of investment strategies:

Capital preservation funds can adopt various investment strategies to ensure the safety of investors' principal. For example, some capital preservation funds use hedging strategies to control risks by buying and selling related financial instruments at the same time; Other capital preservation funds ensure that the principal will not be lost by diversifying into low-risk products and fixed-income products.

3. Investors with low risk preference:

Capital preservation funds are usually suitable for investors with low risk appetite, who hope to obtain stable income while ensuring the safety of principal. Compared with other high-risk and high-yield investment tools, the capital preservation fund provides relatively stable income and will not cause principal loss due to market fluctuations.

4. Relatively low rate of return:

Due to the pursuit of capital preservation, the yield of capital preservation funds is usually low. Compared with risky stocks or other investment tools, the yield of capital preservation funds may be relatively conservative. For those investors who pursue stable income and ensure the safety of principal, the capital preservation fund is still an ideal choice.

Capital preservation fund aims to protect investors' principal by adopting diversified investment strategies and risk control measures. Although the yield is relatively low, it is still an ideal choice for investors with low risk appetite. In the future, with the continuous development of the financial market, the forms and strategies of capital preservation funds will be constantly innovated to meet the needs of investors.