Is the capital preservation fund risky?
What is a capital preservation fund? Capital preservation fund means that in a capital preservation period, investors can get back the original investment principal and enjoy a certain expected annualized expected return. Capital preservation fund is called the safe haven of the stock market. When the stock market is in turmoil, capital preservation fund is a good choice.
Many people think that capital preservation funds can protect capital. In fact, the fund must purchase during the subscription period, and the subscription after the subscription period does not enjoy the current capital preservation agreement, which is calculated according to the normal fund net value. That is to say, like the normal subscription of other open-end funds, there is the risk of principal loss and redemption fee.
Is the capital preservation fund risky? Of course, any investment is risky, and the key is whether you can control the risk. For retail investors, entering the stock market is very risky; With the help of professional organizations, the risk can be reduced to a certain extent, and at the same time, higher expected annualized expected income can be obtained. If you just want to protect your capital, you can choose treasury bonds and bank wealth management products.