In the fund investment market, investors often talk about capital preservation funds. What exactly is a capital preservation fund? In order to let everyone know the capital preservation fund more comprehensively, I have compiled the following contents. Come and have a look!

As far as I know, a capital preservation fund refers to a fund in which investors can get back the original investment principal within a capital preservation period of the fund products, but they do not enjoy preferential treatment when redeeming in advance. Pay attention to the following issues when purchasing capital preservation funds:

First, not all purchases are guaranteed at all times.

Investors need to pay attention to buying capital preservation funds. Buying a capital preservation fund may not guarantee the safety of the principal. Generally speaking, these capital preservation funds can only enjoy the capital preservation treatment when investors buy stocks at the time of raising, but they can't enjoy the capital preservation treatment when they buy stocks at the time of opening subscription in the future.

2. Do not redeem the principal in advance.

Usually, the capital preservation fund suffers losses at this stage of the stock market crash. At this time, many investors may choose to redeem. However, the early redemption of the capital preservation fund does not guarantee the safety of the principal. Once the investor redeems the fund because of the urgent need for funds, the investment principal will not enjoy the capital preservation.

Third, the early redemption penalty rate

Compared with other funds, the redemption rate of capital preservation funds is relatively high, and its early redemption rate is punitive. Moreover, the share change of capital preservation fund is relatively small, which is similar to the advantage of closed-end fund. Therefore, the capital preservation foundation throws out most of the money, unlike open-end funds, which always leave a sum of cash to deal with redemption, redemption will be more passive.

Through the above, I believe everyone knows what a capital preservation fund is. When buying a capital preservation fund, everyone needs to analyze the market situation calmly and objectively, and don't blindly follow suit.