On the premise of capital preservation, you can choose to buy a money fund or a capital preservation fund. Money funds have good liquidity, quick redemption and repayment, higher income than demand deposits, and almost no risk of principal loss.
13. Capital preservation funds can be guaranteed, but you have to buy them at the time of subscription (individual funds can be bought during the subscription period, like Jinyuan Lian Bi Gem Power) and hold them until maturity. This term is generally three years, so the liquidity of the capital preservation fund is poor and the income may be higher than that of the money fund.
Fund products have five risk levels, namely, low-risk cautious products (R 1), moderate and low-risk stable products (R2), moderate and high-risk balanced products (R3), moderate and high-risk enterprising products (R4) and high-risk radical products (R5). Different risk levels are suitable for investors with different risk preferences, and different risks have different returns.
5. Different funds have different risks. For example, money funds and bond funds are less risky, while hybrid funds and stock funds are medium and high-risk, but fund investment fluctuates with market changes, and it is possible to go up and down.
6. When the risk assessment made by investors when purchasing funds is low-to-medium risk, that is, conservative investors are generally unwilling to take on too much risk, and have always focused on capital preservation. If the fund has no capital preservation, then choose low-risk products, such as investing in money funds and ultra-short debt funds. The probability of loss of these two types of funds is very small, especially in the history of money funds, which can be used as substitutes for current savings. If they are willing to take some risks, they can use it now.