1. Bond funds refer to funds that mainly invest in fixed-income financial instruments such as treasury bonds and financial bonds, and are also called "fixed-income funds" because the income of the products they invest in is relatively stable. The investment risk of bond funds is smaller than that of equity funds, but the income is also less. However, the long-term income from investing in bond funds will be higher than that from bank savings. Usually used as a tool to fight inflation.

2. The capital preservation fund mainly invests most of the principal in fixed-income investment instruments, such as time deposits, bonds, bills, etc., so that the due principal plus interest is greater than or equal to the initial principal. Invest fruits or a small amount of funds in stocks and set them in derivative financial instruments such as options to earn market spreads during the investment period.

When the market is in a downturn, everyone is holding the principal, and then they don't know where to go. Capital preservation fund is a better choice, but the degree of capital preservation and risk acquisition is the same.

Extended data:

First, the characteristics of the capital preservation fund

Capital preservation fund is a product neglected by many people among many capital preservation wealth management products. Always adhere to the principle of "others make big profits and I make big profits, while others lose money and I break even". In addition, capital preservation funds can be divided into three categories: full capital preservation but no interest protection; Guarantee the principal and interest; Only part of the principal and fixed interest income are guaranteed.

Second, it is suitable for capital preservation fund holders.

1, people who love stability: investors who seek a "safe haven" for funds, have low risk tolerance and expect to share the gains from the stock market;

2. People with clear investment expectations: investors who have high demand for principal security and hope to outperform CPI through investment, especially those who outperform 3-year time deposits and 3-year debt interest;

3. People whose funds are used for specific purposes: medium-and long-term investors who make reserves for large expenditures in the future, such as preparing children's education funds and pension funds;

4. People with asset allocation needs: Investors who want to allocate investment products with different risk levels in a balanced way can allocate capital-guaranteed hybrid funds as a "safe buffer" for their portfolios.

5. Helpless people who shake the stock market: investors who are difficult to choose in an uncertain market environment choose a capital preservation hybrid fund to achieve "return to capital preservation and appreciation".

Baidu encyclopedia-bond fund

Baidu encyclopedia-capital preservation fund