How to choose a capital preservation fund
1. Stay away from the capital preservation fund managed by fund managers with N positions.
As we all know, a person's energy is limited. A manager who manages more than a dozen funds at the same time should either keep the chicken blood model at all times or reduce the historical expected annualized expected rate of return.
If he manages bond funds, money funds and the like, people don't have high requirements for expected annualized expected returns. But now to manage the capital preservation fund, you have to spend some energy on investment, dear!
2. Don't be fooled by those who trigger the expected annualized expected rate of return.
Now anyone who issues a capital preservation fund likes to add a fashionable trigger to expect annualized expected returns. Some are set to 10%, and some are set to 15% when a rising tide lifts all boats, with a maximum of 24%!
Fund companies compete to raise the expected annualized rate of return, as if the higher the opening price, the higher the expected annualized rate of return. Vegetable friends must be clear that triggering the expected annualized expected rate of return is not as high as possible!
3. Carefully check the investment scope and prospectus of the fund.
Some media reported that some funds even modified the investment scope of capital preservation funds in order to improve the expected annualized rate of return. Generally speaking, the distribution ratio of fixed assets and equity assets is 6: 4, and the maximum stock investment will not exceed 40%. However, some funds have increased the scope of stock investment to 70%.
Although this practice may increase the expected annualized expected return, it also increases the expected risk of the capital preservation fund, and the food director has reservations about this practice.