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What is a capital preservation fund?
Capital preservation fund refers to providing investors with a certain proportion of principal protection by investing in low-risk fixed-income financial products within a certain investment period, and providing investors with additional returns by investing in other high-yield financial instruments (stocks, derivative securities, etc.). ). The fund management company will ensure that investors get a certain proportion of the investment principal after the fund expires, such as 100% of the principal.

The disadvantage of capital preservation fund is that it only invests a small part of its assets in stocks. When the stock market is in a bull market, it will miss the opportunity because the fund has limited funds to invest in stocks. In addition, if investors withdraw before the fund expires, they cannot enjoy the condition of capital preservation.

Among the open-end funds currently launched in China, the capital preservation funds include: Southern Hedge, Yin Hua Capital Preservation and Value-added, Tiantong Capital Preservation and Value-added, Jiashipan Capital Preservation and Golden Elephant Capital Preservation and Value-added.