The so-called capital preservation fund refers to a fund that provides 100% or higher protection for the principal invested by investors within a certain investment period (such as 3 years or 5 years). In other words, fund investors can at least get back the principal guarantee on the maturity date of the investment period, and at the same time, if the fund is successful, investors will get additional income. According to the operation practice of capital preservation fund in China, the average annual income of capital preservation fund is 3%-5%.
The annualized income in individual periods is 8- 10% or even higher (such as the big bull market in 2007, or participating in IPO subscription).
The money fund does not promise to protect the capital. However, if the monetary fund wants to lose its principal, it must meet two conditions at the same time, and the probability of these two extreme situations happening simultaneously is very small. First, the market yield rose sharply in the short term, which led to a sharp drop in securities prices; Second, money funds are redeemed in large quantities at the same time, and bonds with falling prices cannot be held at maturity, resulting in actual losses after selling bonds. With the extension of the holding period of the money fund, the loss probability caused by market risk will be reduced to zero. From the historical data, since the emergence of the 10 monetary fund, there have been only a handful of single-day losses in the domestic market, and there has never been a situation of continuous losses for more than two days. It is better to break even if you don't break even. It is also the case that the money fund has always enjoyed the reputation of "quasi-savings"
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Baidu knows that csdx7504, the total fund classification, ranks third.