What are the capital preservation strategies for capital preservation funds? Is it risky to subscribe for a capital preservation fund?
Is the capital preservation fund really capital preservation?
Operation strategy of capital preservation fund:
1, which must be purchased during the issue period or transition period.
2. It must be held at maturity.
The capital preservation fund has four important time intervals, 1 time point. In short:
Issue period: the subscription period of the fund.
Subscription period (operation period): after the establishment of the fund, the period during which the daily subscription business of the capital preservation fund is opened is also the operation period of the capital preservation fund.
Operation period: after the expiration of the capital preservation period, it will enter the "due operation period", which is generally 3-7 working days after the expiration of the capital preservation period. During this period, the fund basically does not accept subscription and transfer, and can be redeemed and transferred out. If you do nothing, the fund share will generally automatically enter the next capital preservation cycle.
Transition period: the next working day after the end of the operation period and the next working day before the start of the next capital preservation period, which can be simply understood as the "second issuance period".
The conversion date refers to the last working day of the transition period. The capital preservation foundation will count the assets of the day as the capital preservation amount in the next capital preservation cycle.
Redemption rate of capital preservation fund:
Capital preservation fund is different from other general fund products. The redemption fee of such funds is relatively high. Generally, the redemption fee for investment within one year is 2%, 1 .5% for investment between two years, 1% for investment between two and three years, and zero for investment of three years or more.
Therefore, products such as capital preservation funds are not suitable for regular fixed investment, and the investment period is generally longer. It is best to hold the capital preservation fund for more than 1 year, which is generally not suitable for short-term investment unless there is a particularly large contribution of new shares.
The subscription rate of capital preservation funds is generally 1.2%, and investors can have various preferential subscription channels. Generally, online banking transactions of fund companies can reach a minimum subscription fee of 0.6%, and some fund companies also carry out activities of subscription fee 1 discount, and need to remit money to purchase funds or invest in capital preservation funds.