Capital preservation fund The capital preservation fund mainly invests most of the principal in fixed-income investment instruments, such as time deposits, bonds and bills. , so that the due principal plus interest is roughly equal to the principal invested at the beginning; In addition, during the investment period, the fruit or a very small proportion of the principal is set on derivative financial instruments such as options to earn the market price difference. Therefore, the capital preservation fund aims to provide investment opportunities for small investors to protect their capital and participate in the ups and downs of the stock market. Capital preservation fund is not completely capital preservation. Although the capital preservation fund can get back a certain proportion of the principal when the investor redeems at maturity, not all capital preservation funds are completely capital preservation. From the scope of capital preservation, it can be roughly divided into three types: "full capital preservation without interest", "full capital preservation with interest" and "only partial principal and fixed interest income". Therefore, not all capital preservation funds provide 65,438+000% capital preservation design. To put it simply, take the capital preservation fund of 6,543,800 yuan as an example, and the capital preservation ratio is 654.38+0.000%. In order to provide 100% principal guarantee, an investment company initially purchased a one-year zero-coupon ticket with an interest rate of 5% and started to pay 950,000 yuan. After one year, you can get back 6,543,800 yuan to achieve the purpose of capital preservation. In addition, the remaining 50,000 yuan will be used to purchase index options. Suppose the option of one unit is 6,543,800 yuan, and 50,000 yuan can only buy 0.5 units of options. If it expires, the option earns 30%. Because the contract can only buy 0.5 units, the yield can be 30% × 0.5 = 654.38+05%. This 0.5 is the participation rate mentioned in the contract. Therefore, the higher the capital preservation ratio, the lower the participation rate and the lower the relative investment risk. Therefore, the design of capital preservation ratio has a very important impact on the return on investment and investment risk. When investors invest in capital preservation funds, they can decide the capital preservation ratio according to their own risk needs. Although the capital preservation fund has a capital preservation, it has a time limit, because the capital preservation fund is a combination. Whether it is a fixed income commodity or an option investment, there is a certain time limit. Therefore, unlike the sustainable operation of general funds, the capital preservation fund has a duration when it is issued, so as to avoid frequent redemption by customers and affect the operating cost and performance of the fund. At present, the operation time of principal guaranteed fund design is mostly about two to three years. In addition, the principal repayment guarantee provided by the capital preservation fund, only when the fund expires, if the investor cancels the contract and redeems in advance, will not only be unable to enjoy the capital preservation guarantee, but usually have to bear the redemption fee. However, at present, most of the newly issued capital preservation funds have regular redemption mechanisms. The most common way is to open redemption quarterly or monthly, but early redemption still cannot enjoy the guarantee of returning the principal provided by the fund. Therefore, when considering the capital preservation fund, investors should make long-term and short-term capital planning in advance, and then choose the appropriate capital preservation fund. At present, there are about six capital preservation funds, namely, Cathay Pacific Jin Lu Capital Preservation, Yin Hua Capital Preservation, Southern Hedging Value-added, Southern Hengyuan Capital Preservation, Bank of Communications Capital Preservation and Growth Enterprise Market Power Capital Preservation.