There is no absolute capital preservation fund in Public Offering of Fund market, but some funds are absolute income funds because of their very low risk coefficient and close to the capital preservation income. If you are a stable or risk-averse investor, you can consider an absolute income fund.

Absolute income fund does not mean reaching a certain income. Absolute return is an investment strategy, that is, under the premise of controlling risks, try to obtain market returns. Absolute income funds in the market are mainly fixed income and secondary bond funds, absolute income strategy flexible allocation funds and quantitative hedge funds.

Fixed income absolute income funds include money funds, short-term debt funds, medium-and long-term debt funds and fixed income+strategic funds.

Among them, the short-term returns of money funds, short-term debt funds and medium-and long-term debt funds are generally very stable and the risk coefficient is low. The fund with fixed income+strategy has higher relative income, with long-term investment reaching more than 6% annually and cash withdrawal controlled within 3%. In the short term, they may fluctuate under the influence of the market. The yield curve is generally smooth and upward.

Compared with pure debt funds, secondary bond funds are more enterprising, which can bring good investment experience and give optimistic and stable returns. Secondary bond funds also belong to fixed income+strategic funds, but there are strict requirements on the bond investment ratio, which requires that the bond investment ratio should not be less than 80%.

The flexible allocation fund with absolute return strategy can also be divided into fixed income+strategic fund, which is also a fund product with both offensive and defensive functions.

The source of income of quantitative hedge funds mainly includes three parts: the first part is the income of fixed-income products, the second part is the new income, and the third part is the excess income obtained by selected stocks through stock index futures to hedge systemic risks. The advantage of quantitative hedging strategy lies in stripping market risk through hedging, and then obtaining pure alpha income.

Funds with absolute return strategy can focus on the sharp ratio and maximum withdrawal of funds. The higher the Sharp ratio, the better, and the lower the maximum retreat.