Principal guaranteed fund has been popular abroad for many years, because no matter how many markets there are or how empty they are, it will not affect our daily life or our original plans. How much do we need to know about the fund market? The following are the advantages of purchasing capital preservation funds compiled by Bian Xiao. Welcome to read!
The benefits of buying a capital preservation fund.
Principal guarantee: Capital preservation funds usually provide a certain degree of principal guarantee. This means that at the end of the fund term, investors can get at least part of the initial investment principal, even if the fund's investment performance is poor or there is a certain loss.
Risk control: Capital preservation funds usually take a series of risk control measures to protect investors' principal. Fund managers may adopt conservative investment strategies, such as investing in low-risk bonds or fixed-income products, to reduce investment risks and volatility.
Long-term steady growth: the capital preservation fund pays attention to long-term steady growth and pays more attention to the preservation and appreciation of investment principal. Although the income potential of capital preservation funds may be relatively low, they usually adopt a relatively conservative investment strategy to ensure more stable compound interest growth.
Psychological comfort for investors: principal guaranteed fund can provide some psychological comfort, especially for those investors who are sensitive to investment risks or want to ensure the safety of principal. By choosing a capital preservation fund, investors can alleviate some investment pressure and anxiety.
Description of the capital preservation fund.
Capital preservation fund is an investment tool aimed at protecting investors' principal. By using derivative products and other methods, it takes risk control measures to ensure that fund investors can obtain at least part or all of the initial investment principal within a specific period of time. Capital preservation funds usually focus on reducing investment risks and pursuing stable investment returns. However, the return on investment and the degree of capital preservation may vary depending on the capital preservation fund. Investors should carefully read the relevant documents and terms of the Fund to understand the specific capital preservation mechanism and investment strategy. Please note that the capital preservation fund does not mean that there is no investment risk at all, and the impact of investment market fluctuations and other risks on the investment value of the fund still exists.
What is a capital preservation fund?
The capital preservation fund has achieved "capital preservation" at the expense of possible income, which can show good stability in the bear market of the stock market. In the capital preservation fund, most of the principal is invested in fixed-income investment instruments, such as time deposits, bonds, coupons and so on. There is usually a guarantee period (the lock-up period set by the capital preservation fund is generally 3 years in China and even 7- 12 years abroad). After the warranty period, you can get back the original investment principal, but if you redeem it in advance, you will not enjoy the preferential treatment. In the uncertain stock market, capital preservation fund is a good choice for investors with weak risk tolerance. Principal guaranteed fund usually aims at preserving capital and increasing value, and mainly invests in low-risk, high-dividend, high-yield securities to ensure that investors can get the principal plus income at maturity, and generally get a return higher than the interest on bank deposits during the same period. Capital preservation funds generally stipulate a certain closed period, so they belong to "semi-closed" open-end funds.
Selection principle of capital preservation fund
Capital preservation amount: the capital preservation amount is negatively correlated with investment income, that is, a high capital preservation amount means a low investment income amount; On the other hand, if the capital preservation amount is low, the probability of obtaining higher investment income 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.
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 profitability of capital preservation funds. When choosing a capital preservation fund, you should carefully read the information about the fund management company 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.
Timing of entering the market: the capital preservation fund has good resilience and can effectively avoid systemic risks in the stock market. Capital preservation fund is undoubtedly a better choice when the stock market is in a downturn or shock and the investment income cannot be well guaranteed.
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.
The method of realizing capital preservation of capital preservation fund
Assuming that the initial scale of a capital preservation fund is 65.438+0 billion yuan, it is ultimately necessary to ensure that the assets after three years are not less than 65.438+0.065438+0 billion yuan. In order to achieve the purpose of capital preservation, the fund manager will calculate how many assets need to be taken out according to the interest rate of three-year time deposits in the market.
At present, the three-year fixed interest rate is 4%. According to this income level, if the assets after three years reach1010 million yuan, only 898 million yuan will be needed to achieve the purpose of capital preservation. The extra/kloc-0.02 million yuan can be used to invest in high-risk assets such as stocks. Even if all these assets are lost, the purpose of capital preservation can be achieved.
In addition, the fund company will also introduce a guarantee mechanism, so that the initial principal and subscription fee will be returned to investors at the end of the capital preservation period.