It is a good choice to invest in the capital preservation fund, but many investors with a wait-and-see attitude are very skeptical: is the capital preservation fund guaranteed?

1. What is a capital preservation fund?

1. Capital preservation fund refers to a fund in which investors can recover at least a certain proportion of the agreed investment principal when the investment contract expires. The investment target in the capital preservation fund is usually the investment tool with the lowest risk and relatively less income. Capital preservation fund is a kind of mutual fund with expected annualized expected income, which ensures that investors' original investment will not suffer any losses. It is mainly used by insurance companies and the investment object is fixed expected annualized expected income varieties. In essence, the capital preservation fund is a balanced fund, which mainly realizes the goal of maintaining and increasing the value of the fund through the strategic allocation of fixed expected annualized expected income assets (mainly bonds) and stocks and derivative financial products (options) in the portfolio. This kind of fund product has low risk and does not give up the space to pursue the expected annualized expected return.

2. Domestic capital preservation funds include: Cathay Pacific Jin Lu Capital Preservation Hybrid, Bank of Communications Capital Preservation Hybrid, Jinyuan Lian Bi Growth Enterprise Market Capital Preservation Hybrid, Southern Hengyuan Capital Preservation Hybrid, Southern Hedging Value-added Hybrid, and Yin Hua Capital Preservation Value-added Hybrid.

Second, the characteristics of the capital preservation fund

1, principal guarantee

The core feature of capital preservation fund is that investors can get the principal guarantee when the fund expires. Of course, if you redeem in advance, you won't enjoy the discount. Therefore, investors can protect the principal from loss 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 foundation stipulates the capital preservation period (funds generally set a certain lock-up period, which is generally 3 years in China and even 7 years abroad to 12). Only when the fund holder holds the capital preservation fund expires can he get the capital preservation protection. Investors can get back the original investment principal, but they will not enjoy preferential treatment if they redeem it in advance. Investors should not only bear the risk of fund net value fluctuation, but also pay 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 same principal return.