First of all, their fund types are different. Bond capital preservation fund is a bond fund, the investment target is bonds, and the risk is relatively low.
Capital preservation fund is a hybrid fund. Capital preservation funds generally invest 10%~ 15% of the fund assets in the stock market, and allocate the rest to bond funds. The risk and expected annualized expected return are higher than those of the bond capital preservation fund.
Third, their risks come from different places. The risk of bond funds mainly comes from credit risk and expected annualized interest rate risk. At present, the market liquidity is still abundant, and the expectation of loose monetary policy still exists. The downward trend of the expected annualized interest rate of market funds has not changed, the slow bull pattern of the bond market is expected to continue, and the allocation value of bond funds still exists.
Finally, bond capital preservation funds do not necessarily have capital preservation, and capital preservation funds must have capital preservation. Bond funds encounter credit risk or expected annualized interest rate risk, which leads to the decline of expected annualized expected return of fund assets. Fund managers will not compensate investors, but the capital preservation fund is guaranteed, and CPII strategy is adopted to ensure the safety of investors' principal. Even if there is a loss, it will compensate the investor for the loss of principal according to the scope agreed in the contract.
However, the capital preservation fund should generally be purchased during the subscription period and redeemed at the end of the capital preservation period. The guarantee period of the capital preservation fund is generally 3 years. After the guarantee period expires, it can be redeemed (if the loss guarantees to redeem the principal, no interest is charged), or it can be automatically transferred to the next guarantee period. This is the most fundamental difference between bond funds and capital preservation funds.