Does Alipay low-risk fund protect capital?
Without capital preservation, Alipay's low-risk fund is only risky, not a product with capital preservation. At present, the only wealth management products that can protect capital and interest on the market are bank deposits, and low-risk funds have little risk, but there is still the risk of loss.
Most of Alipay's low-risk funds belong to monetary funds. For example, Yu 'ebao invests in money funds. Although the money fund has no loss at present, its essence is not a product with guaranteed capital and interest, and its income and risk are very stable. Low-risk funds have low investment risks and low investment returns, but as long as they are held for a long time and the principal is sufficient, they can also get considerable returns.
Alipay low-risk fund is more suitable for capital preservation investors and stable investors to buy. The product risk of low-risk funds is particularly low, even if there is risk. Moreover, we have not heard of the loss of the money fund.
If investors want to invest in funds, no matter any fund, they need to bear investment risks. Money funds have the least investment risk, followed by bond funds. Relatively speaking, equity funds, index funds and hybrid funds have great investment risks and losses, but their investment returns will be much higher than those of monetary funds and bond funds. Stock funds, index funds and hybrid funds are all suitable for radical investors and require investors to have high risk tolerance. When choosing the investment method, it is suggested to consider your own risk tolerance and capital situation.