Recently, the capital preservation fund has become a complete "darling" in the new fund issuance market, which is different from the situation that partial stock funds are still cold and cheerless for a month. Capital preservation funds usually end raising in a few days, and the initial raising amount of several billion yuan is also the envy of other types of funds. The following small series will tell you why the capital preservation fund has become the darling of the market.
The meaning of capital preservation fund
GuaranteedFund is a kind of capital preservation fund, which provides a certain proportion of investment principal in a certain period of time. Funds use interest or a very small proportion of assets to engage in high-risk investments, while most assets engage in fixed-income investments, so that no matter how the market of fund investment falls, it will not be lower than the guaranteed price, thus achieving the so-called guaranteed effect. Internationally, the capital preservation fund can be divided into two types: guarantee fund and guarantee fund, in which the guarantee fund does not need a third party to provide guarantee. Generally speaking, a capital preservation fund invests most of its assets in fixed-income bonds, so as to pay the investor's principal when the fund expires, and the remaining assets are about 15%-20% invested in stocks and other tools to improve the return potential. Most funds are subscribed without capital preservation, but subscribed with capital preservation'
Why capital preservation fund has become the darling of the market
In the case that the market risk appetite has not really improved, the capital preservation fund is still the favorite of most ordinary people. Due to the hot subscription, the recently issued capital preservation fund had to start proportional placement. In other words, even if you participate in the subscription, whether the basic people can subscribe depends on luck, which is really beyond the reach of other funds.
Some financial experts pointed out that now is the best time to invest in capital preservation funds. On the one hand, under the background of interest rate cuts and RRR, with the gradual development of interest rate cuts, the bond market is expected to continue to slow down in the future, which is very conducive to the rapid accumulation of bond asset investment and capital preservation fund safety mats; On the other hand, the early market adjustment provides a good opportunity for the new fund to open positions, which is conducive to the fund to select high-quality stocks. As the defense buffer thickens, the proportion of equity investment will also increase accordingly. If the stock market has a good market, the capital preservation fund will be easier to operate and share the stock market dividend.
The biggest difference between capital preservation funds and other funds is the word "capital preservation". It is worth noting that there are two main conditions for capital preservation funds to achieve capital preservation: one is that they must be held until maturity, and the other is that most funds subscribe for capital preservation, and subscription does not. If investors urgently need funds to redeem in advance, not only can they not enjoy the treatment of capital preservation, but fund companies will also charge high redemption fees. Compared with other types of funds, they generally charge a redemption fee of 0.5%, and some capital preservation funds stipulate in the contract that early redemption requires a punitive rate. Most three-year capital preservation funds will charge a redemption fee as high as 2% in the first year of redemption, and some one-year capital preservation funds will charge a staggering 3% early redemption fee. If investors buy shares of the capital preservation fund during the subscription period instead of the collection period, they will not be able to enjoy the capital preservation commitment.
Based on the above clauses, many investors have misunderstood the capital preservation fund, thinking that the shorter the capital preservation period, the better, because the capital preservation clause is usually only applicable to investors who hold the full capital preservation period. However, from the international experience, the capital preservation period of overseas capital preservation funds is mostly significantly longer than that of domestic funds, generally 7 years to 12 years; However, the capital preservation cycle of most domestic capital preservation funds is three years, and two or even one-year capital preservation funds have appeared in the past two years. It should be pointed out that although a shorter capital preservation operation cycle can better meet the liquidity needs of investors, it will also restrict the fund managers' choice of assets and increase the fluctuation of net value, which is unfavorable to the long-term performance of the fund.
In the past two years, the capital preservation fund has an innovation, that is, it has adopted the target income trigger mechanism. Jinyuan Huili Huili Capital Protection Fund is the first capital protection fund with target trigger mechanism, which was established on February 5, 2008. This target return trigger mechanism not only caters to the market's preference for absolute return products, but also improves it in two aspects: first, liquidity enables investors to get income as soon as possible and redeem funds to invest in the stock market when the market is good; The second is security, so that customers' profits are locked in to a certain extent. According to the above fund contract and expiration announcement, when the cumulative rate of return of the Fund reaches 65,438+05%, the capital preservation period will end early on the 20th working day after that date. The net value of the Fund reached 1. 153 on February 8, 2008, which triggered the maturity condition, more than one year earlier than the end date of the three-year capital preservation period.
This target return trigger mechanism usually sets the target return rate of the capital preservation period in each capital preservation period. Recently, major fund companies are actively promoting this target rate of return, but careful investors will find that there is a small line under this figure, which usually reads "no guaranteed return". In fact, the target rate of return is the upper limit of income, which is not guaranteed to be achieved like bank wealth management products. In addition, this target rate of return refers to the rate of return during the capital preservation period, not the annualized rate of return. Based on the target rate of return 18% of the latest guaranteed period publicized by a capital preservation fund, the actual annualized rate of return of the three-year guaranteed period is only about 5.7%.
Why capital preservation fund has become the darling of the market
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