1. What is a capital preservation fund?
The capital preservation fund mainly invests most of its principal in investment instruments with fixed expected annualized income, such as time deposits, bonds and bills. , so that the due principal plus interest is roughly equal to the principal invested at the beginning; In addition, during the investment period, the fruit or a very small proportion of the principal is set on derivative financial instruments such as options to earn the market price difference. Therefore, the capital preservation fund aims to provide investment opportunities for small investors to protect their capital and participate in the ups and downs of the stock market. However, it is not absolute capital preservation. Only when the fund is open and redeemed at maturity can the principal be guaranteed.
Second, what is a money fund?
The money fund mainly invests in short-term monetary instruments with minimal risk, and the expected annualized expected return is basically similar to the one-year regular expected annualized interest rate. All monetary funds are calculated according to the daily expected annualized expected return of 10000 and the historical expected annualized expected return of 7 days, and the net value is 1.00. The unit T- 1 net value you mentioned does not exist, does it? Basically, you can check whether your fund is earning or losing on the website of the fund company that bought the fund. The expected annualized expected income of the fund is settled daily. At the end of each month, the expected annualized expected income of one month is transferred to your account according to the share, and can be redeemed if necessary. Generally, it is T+ 1 or T+2, which is a substitute for current savings.
3. What's the difference between a money fund and a capital preservation fund?
1. Subscription fee and redemption fee are different:
There is no redemption fee for the money fund, and the redemption fee for the capital preservation fund is higher, which increases the cost relatively.
2. The calculation method of expected annualized expected return is different:
The net value of the money fund remains unchanged, always maintaining 1 yuan, and the expected annualized expected return every day will not only increase the share, but also enjoy compound interest.
The expected annualized expected return of the capital preservation fund is reflected in the change of its net value. Sometimes the net value is less than 1 yuan, and only when it reaches 1 yuan, plus the redemption fee, can the cost be realized, and then the expected annualized expected income can be calculated.
Compared with the capital preservation fund, the money fund expects stable annualized expected income, but the performance of the capital preservation fund is not ideal. Of course, it does not rule out that the expected annualized expected return of the stock market can increase rapidly after it turns better.
3. Hold time is different:
It is convenient to hold the money fund in and out, and one day it is expected that the annualized expected income will not be lost.
Capital preservation funds have requirements for holding time, usually three years. If the net value is lower than the face value at the time of early redemption, the capital preservation cannot be realized.
4. 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). 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 expected annualized expected returns. According to the operation practice of capital preservation funds in China, the average annual expected annualized expected return of capital preservation funds is 3%-5%, and the historical expected annualized expected return in individual periods is 8- 10%, or even higher.
5. The Monetary 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, in the short term, the market expects the annualized expected rate of return to rise sharply, resulting in 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. Judging from the historical data, since the emergence of the Monetary Fund in 10, there have been only a handful of single-day losses in the domestic market, and losses for more than two days have never occurred. 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".
Readers will understand the difference between money funds and capital preservation funds this time.