What is the expected annualized expected return of the capital preservation fund? What is the redemption rate of the capital preservation fund?
Instructions for subscription of capital preservation fund:
First of all, the capital preservation fund has a guarantee period for the principal. Capital preservation fund refers to a fund that provides 100% or higher guarantee for the principal invested by investors within a certain investment period (such as 3 years or 5 years).
Secondly, the capital preservation fund only protects the capital, not poly. The capital preservation of the capital preservation fund is only for the principal, and it does not guarantee a certain income of the fund, nor does it guarantee the minimum expected annualized expected income. Therefore, there is the possibility that the fund shares purchased by investors can only recover the principal on the maturity date of capital preservation, or be redeemed before the maturity date of capital preservation, resulting in losses.
Finally, the capital preservation fund redeemed the hard-to-protect capital in advance. The protection of capital preservation of capital preservation funds is aimed at investors who hold the fund due, and for those investors who redeem it before the maturity, they can only redeem their fund shares according to the net value of the fund at that time.
Can the capital preservation fund be bought and sold at any time?
The trading hours of the Fund (T day) are separated by 15:00 pm, that is to say, the net fund value of the current day is calculated before 15: 00 pm for subscription and redemption. If it exceeds (legal holidays and weekends are non-trading days, which will not generate any expected annualized expected income), the net fund value of the next transaction will be calculated. Only the deposits and withdrawals of monetary funds are supported, and the redemption time of other types of funds is indicated in the prospectus or product page.
Principles for selecting capital preservation funds:
1. The guaranteed amount. The amount of capital preservation is negatively correlated with the expected annualized expected return of investment, that is, a high amount of capital preservation means that the expected annualized expected return of investment is low; On the contrary, if the capital preservation amount is low, the probability of obtaining a higher expected annualized return on investment is also high, but the relative risk is also amplified. Investors are advised to choose which capital preservation fund to invest in according to their risk tolerance.
2. Fund manager. High-quality professional fund management companies and investment research teams are the guarantee for the good operation of fund investment and the key factor to determine the expected annualized expected return ability of capital preservation funds. When choosing a capital preservation fund, we should carefully read the information about gold management companies and company executives in the prospectus of the capital preservation fund, as well as the professional background and working experience of the proposed fund manager.
3. Market access. The capital preservation fund has good resilience and can effectively avoid systemic risks in the stock market. In the case that the stock market is depressed or fluctuating and the expected annualized expected return on investment cannot be well guaranteed, the capital preservation fund is undoubtedly a better choice.
4. rate. The expenses of the capital preservation fund mainly include subscription/subscription fees, redemption fees, management fees and custody fees. Generally speaking, the rate is often related to the duration of the fund. The later the redemption, the lower the rate.