With people's attention to financial management, more and more people will not only put their money in the bank, but also start investing in financial management, and buying funds is one of the investment tools. However, people are still uneasy when buying funds, hoping that they can get benefits, and at worst, they will not lose their principal. Can they buy a fund to protect their capital?

Can I buy a fund to protect my capital?

Whether the fund is guaranteed depends on the fund products purchased by investors. If investors buy capital preservation funds, they can get back all the principal on the maturity date of the investment period. If the fund is successful, there will be additional income. If investors buy equity funds, if the stock market rises, investors will have super-high returns, but if the stock market falls, the principal will generally lose a lot. Therefore, whether the purchased fund can protect the capital depends on the purchased fund and its operation and income, and cannot be generalized.

In addition, among all fund types, the money fund has the lowest risk. Mainly invest in the money market, such as short-term government bonds, repurchase, central bank bills, bank deposits, etc. Although there is no commitment to capital preservation, the probability of loss of the principal of the money fund is very small.