First, the capital preservation fund cannot be redeemed in advance.
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. However, due to the limitation of the investment period of the capital preservation fund, early redemption can not only guarantee the principal, but also pay the redemption fee. Therefore, when investing in such goods, we must pay attention to the proportion of redemption fees and related redemption conditions.
Capital preservation fund is a special type of fund product, which implements capital preservation investment strategy. Its characteristic is that it promises to provide investors with a certain proportion of principal guarantee within a certain period of time, and on this basis, it shares the expected annualized expected return of market rise. The "capital preservation" of the capital preservation fund is mainly realized through two mechanisms: on the one hand, the principal preservation is realized by investing in portfolio insurance technology, that is, the potential maximum loss of risky asset portfolios such as stocks is offset by the historical expected annualized expected return of safe assets such as bonds and the expected annualized expected return realized in the previous period of the fund, so as to realize the principal preservation; On the other hand, the guarantee mechanism is introduced, and financial institutions such as commercial banks, insurance companies and guarantee companies guarantee the fund products.
Second, is the capital preservation fund really capital preservation?
1. The capital preservation fund has a "guarantee period" for the guarantee of principal. Capital preservation fund refers to a fund that provides 100% or higher guarantee for the principal invested by investors within a certain investment period (such as 3 years or 5 years).
2. The capital preservation fund only guarantees the "capital" and does not guarantee the income. The capital preservation of the capital preservation fund is only for the principal, and it does not guarantee a certain income of the fund, nor does it guarantee the minimum expected annualized expected income. Therefore, there is the possibility that the fund shares purchased by investors can only recover the principal on the maturity date of capital preservation, or be redeemed before the maturity date of capital preservation, resulting in losses.
3. The capital preservation fund redeems difficult-to-protect funds in advance. The protection of capital preservation of capital preservation funds is aimed at investors who hold the fund due, and for those investors who redeem it before the maturity, they can only redeem their fund shares according to the net value of the fund at that time.
Third, how to protect the capital of the capital preservation fund?
Is there no risk in investing in capital preservation funds? Professionals said that there are conditions for realizing capital preservation: first, it must be held at maturity; second, most funds do not subscribe for capital preservation, and subscription only guarantees capital preservation. If it is redeemed in advance, investors may suffer losses. Similarly, if the investor is not raising funds, but buying during the time when the capital preservation fund is open for subscription, the capital preservation fund share cannot enjoy capital preservation.
Moreover, early redemption may not only break the funds, but also encounter high departure fees. Compared with the general redemption fee of 0.5%, some capital preservation funds stipulate in the contract that early redemption requires a punitive rate.
It can be seen from some capital preservation fund contracts that the capital preservation period of capital preservation funds is generally three years, and there are also products that set the capital preservation period to two years, 1.5 years, 1 year. According to the fund contract, the principal is guaranteed within the agreed time limit, and early redemption may cause principal loss. Moreover, if we enter the next capital preservation cycle, the Fund Division will recalculate the holding period in the new capital preservation cycle.
For example, an investor has held a "fund" with capital preservation for nearly 9 years, but a handling fee of 976 yuan was deducted when redeeming it. The reason is that the capital preservation fund he bought entered the third capital preservation cycle, which did not expire at that time, so he suffered a sky-high departure fee. Therefore, investors should carefully understand the terms of capital preservation when purchasing capital preservation funds, and have certain expectations on the service life of funds to avoid losses.