From the general investment strategy of the fund, it is mainly subscription, but in the debt base, subscription must be considered for the investment strategies of the capital preservation fund and the regular opening of the debt base.
According to the capital preservation clause of capital preservation funds, such funds usually only provide capital preservation services for funds that subscribe and hold maturity. Therefore, when issuing capital preservation funds, investors need to read the relevant documents carefully and carefully consider whether it is necessary to subscribe after fully understanding the various situations of the relevant capital preservation funds. In addition, since the capital preservation fund usually has an upper limit, in order to avoid subscription failure or forced participation in the placement on the last issue day, we suggest that if we really think that a capital preservation fund is better, we might as well consider subscribing as soon as possible.
Why should we seriously consider whether to subscribe for a regularly open debt base? The apparent reason is that these funds have a prescribed closed period after their establishment, and investors cannot subscribe. However, further consideration is still related to the Measures for the Operation and Management of Public Offering of Securities Investment Funds, which came into effect on August 8, 2004. Article 32 of the Operational Measures stipulates: "A fund manager shall not invest in securities with the fund property under any of the following circumstances: (6) The total fund assets exceed 140% of the net fund assets." However, for this provision, Articles 1 and 2 of the Provisions on Issues Related to the Implementation of the Measures for the Operation and Management of Public Offering of Securities Investment Funds give such a supplementary explanation: "For Item 6 of Article 32 of the Measures for Operation, closed operation funds and capital preservation funds may be exempted, but the total assets of the funds shall not exceed 200% of the net assets of the funds." According to this supplementary provision, capital preservation funds and regular opening of debt base can have greater investment space than other types of funds. In this way, for all kinds of funds mainly engaged in bonds, there is a theoretical opportunity to further improve the expected annualized expected return of funds.
Judging from the market situation, it seems that the short-term financial management debt base, whose circulation has dropped significantly since the first half of this year, has started to increase again. Of course, for these regularly open debt bases, in addition to timely subscription, it is also necessary to pay attention to timely subscription on the centralized subscription day when each product is regularly open.