I. Development of the Capital Protection Fund The Capital Protection Fund originated in the United States in the mid-1980s. Its core is portfolio insurance technology. Founded by finance professor Heini. Leland and MarkRubinstein of Berkeley University, this technology was first applied to the investment management practices of WellsFargoInverstmentAdvisors, AetnaLife and Casualty in 1983, and it flourished in the mid-1980s. Relevant information shows that by June 1987, the global fund assets managed by this insurance technology have reached 50 billion US dollars. According to the latest statistics of American Investment Fund Association (ICI), the total amount of guarantee funds and other funds except stocks, hybrid funds, bonds and money markets accounts for about 5% of the total assets of American funds. According to the information released by the European Federation of Investment Funds (FEFSI) at the end of 2002, guarantee funds have developed rapidly in Europe in recent years, which is obviously attractive to individual investors. As of July 2002, the assets of 2229 guarantee/protection funds have reached 654.38+250 billion euros, of which France, the Netherlands, Belgium and Luxembourg have a large market share. It is not difficult to see that the capital preservation fund has become one of the indispensable investment varieties in the capital market of developed countries. The first capital preservation fund issued by China and Hongkong is Citi Garant Tel&; Tech) and HSBC's 90% technology capital preservation fund, which were closed for 2.5 years and 2 years respectively, have now expired. Zheng Lingling, head of the research department of Morningstar Asia Company, analyzed that the market situation at that time was that "technology stocks plummeted, interest rates were lowered, and capital preservation funds mainly looked for bank deposit customers". By 200 1 and 2002, capital preservation funds had developed rapidly, with more than 100, far exceeding the traditional stock funds. In 2002, at most seven or eight capital preservation funds were launched at the same time. According to the statistics of Hong Kong Investment Fund Association, the sales of capital preservation funds, stock funds and bond funds accounted for 3%, 1 16% and-19% of the total sales in 2000, respectively, and the proportions changed greatly in 2006 1% and 2000' s 5%. As of March 3, 2003, the number of capital preservation funds in Hong Kong was 18 1, accounting for about 10% of the total funds. In April 2003, Taiwan Province Province launched the first capital preservation fund. Taiwan Province Securities Regulatory Commission has stipulated a series of standards and explanations for capital preservation funds, such as requiring the prospectus to fully reveal the nature and risks of capital preservation funds, and clearly telling the setting parameters of capital preservation funds, such as capital preservation rate, participation rate, investment period and standards of guarantee institutions. Second, the main characteristics of the capital preservation fund internationally, the capital preservation fund can be divided into two types: capital preservation and capital preservation, of which the capital preservation 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. The main features of the capital preservation fund are: 1, which ensures the safety of the principal. The general capital preservation foundation clearly stipulates the degree of security of the principal in the fund contract, and the degree of capital preservation includes partial guarantee of the principal security, such as guaranteeing 90% of the principal; 2. Ensure the safety of the client for a period of time. Generally speaking, the principal can only be guaranteed if the investor participates in the whole process, and the last-in-first-out investor does not enjoy the capital preservation clause in the fund contract. In essence, the capital preservation fund is a hybrid (balanced) fund, which mainly realizes the goal of maintaining and increasing the value of the fund through the strategic allocation of fixed-income assets (mainly bonds), stocks and derivative financial products (options) in the portfolio. This kind of fund products have low risk, and they don't give up the space of pursuing excess returns. Therefore, this kind of products are favored by investors, such as Hongkong, Singapore and Taiwan Province Province, which guaranteed their capital when the stock market was depressed some time ago. In the bull market, because these products can share the gains brought by the stock market rise, their yield is not much worse than that of stock funds, so they also have strong market competitiveness. It can be said that both bull market and bear market capital preservation funds have strong selling points. 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 funds mainly realize capital preservation by investing most of the principal in fixed-income investment instruments, such as time deposits, bonds, bills, etc. , 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. The capital preservation fund is not fully 100% guaranteed. Although the capital preservation fund provides investors with a certain proportion of the principal when the fund is redeemed at maturity, it does not