Commonly used portfolio insurance strategies include hedge insurance strategy and fixed proportion portfolio insurance strategy (CPPI). At present, China's capital preservation fund mainly adopts CPPI, which generally does not guarantee income, but only guarantees the safety of all or part of the principal. CPPI, that is, fixed proportion portfolio insurance strategy. First, determine a capital preservation target, that is, guarantee 100% principal or 90% principal. After determining the capital preservation target, the fund manager will judge the lowest rate of return that can be guaranteed during the capital preservation period according to the situation of the money market and the trend of bank interest rates, and then invest most of the funds in fixed-income products to ensure the security of the fund's principal at maturity. The remaining small amount of funds is an unburdened free chip for fund managers, who can use it to invest in various high-risk and high-yield securities, such as stocks, options and futures. Hedging insurance strategy mainly relies on financial derivatives to maintain or increase the value of portfolio. As the current financial derivatives market in China has not been established, this method of capital preservation has not yet appeared in China. For the capital preservation fund, the longer the investment period, the more cost-effective it is to invest in capital preservation. Conservative and steady investors can buy 50%-90% of risky assets into related low-risk assets such as capital preservation funds; Confident, balanced and enterprising investors can allocate 20%-50% of their risk assets to capital preservation funds or other similar products to better enhance the stability and security of funds. No matter what type of fund you invest in, among the three elements of investment, the order of consideration should be safety, liquidity and profitability.