What is a segregated fund? Please explain it plainly and simply!

Hello, principal-protected type refers to the use of portfolio insurance technology, to ensure that investors can at least get the investment principal or a certain return at the maturity of the investment, its investment goal is to lock in the risk while striving to have the opportunity to obtain a potentially high return.

It has three characteristics, namely principal protection, semi-enclosedness, and value-added potential.

1. Principal protection.

The core feature of the principal-protected type ** is that when the investor holds ** at the maturity, he can at least obtain the investment principal and a certain return, so the investor can avoid the loss of the principal by investing in the principal-protected type**.

2. Semi-closed.

The principal-protected type will stipulate a period of principal protection, and the holder can only obtain the guarantee of the principal protection when the principal protection expires. If you redeem it early, you will not enjoy preferential treatment.

3. Value-added potential.

While ensuring the safety of investors' principals, the principal-guaranteed type shares the income of the market through the investment of ** or various financial derivatives. Compared with bank deposits or treasury bond investments, the principal-protected type** has a higher appreciation potential, and has a higher expected return while also guaranteeing the return on principal.

Capital protection** refers to providing investors with a certain proportion of principal security guarantee by investing in low-risk fixed-income financial products during a certain investment period, and on the other hand, providing investors with additional returns through the investment of some other high-yield financial instruments (**, derivatives**, etc.). The management company will guarantee that the investor receives a percentage of the principal amount invested, such as 100% of the principal, after the maturity of the term.

The disadvantage of capital preservation is that capital protection only invests a small part of its assets, and when it is in a bull market, it will miss the opportunity due to the limited funds to invest. In addition, if the investor withdraws before the expiration of **, he cannot enjoy the condition of capital protection.

Capital preservation, as the name suggests, is to use bond interest to ensure the safety of the principal, and then use a small part of the ** investment to win higher returns, and ensuring the safety of the invested principal is indeed its biggest selling point.

However, capital preservation** does not mean that the principal is protected at all times. The capital preservation of capital protection** is conditional, and investors can only enjoy the current capital protection when they buy and hold it during the subscription period, that is, they can only enjoy the capital preservation by participating in the whole process.

This is to invest most of the principal in investment instruments with fixed income, such as fixed deposits, bonds, bills, etc., so that the principal plus interest at maturity is roughly equal to the principal invested at the beginning of the period; In addition, the yield or a very small percentage of the principal is set on derivative financial instruments such as options to earn the market interest rate difference during the investment period, so the principal-protected type is designed to provide small investors with capital preservation and participate in the investment opportunities of the market.

However, it is important to note that the principal-protected type** is not completely 100% principal-protected.

What is Capital Preservation**? What does capital protection** mean?

In the investment market, it is common to hear investors talk about capital preservation. In the end, what is capital protection**? In order to let you have a more comprehensive understanding of capital protection**, I have compiled the following content, orange locust come and take a look to find out!

As far as I understand, capital preservation refers to a kind of product that investors can get back the original invested principal during a period of insurance of the product, but if they redeem it in advance, they will not enjoy preferential treatment. You need to pay attention to the following issues when buying capital protection**:

1. Not always buy to protect the principal.

Investors need to pay attention to the fact that it is not when to buy capital protection** that the safety of the principal can be guaranteed. Generally speaking, these capital protection** can only enjoy the treatment of capital protection if the investor buys the shares at the time of fundraising, and the shares purchased at the time of opening the Shenyuan Friends purchase after the purchase cannot enjoy the capital protection.

2. Early redemption is not principal-protected.

Normally, the capital protection will occur as the loss occurs at this stage. At this time, many investors may choose to redeem. However, early redemption of capital protection** does not guarantee the safety of the principal.

Once the investor redeems the capital due to urgent need of funds**, the investment principal will not enjoy capital protection.

3. Early redemption** punitive rate.

Compared with other **, the redemption rate of capital protection ** is relatively high, and its early redemption rate is punitive. Moreover, the change in the share of capital preservation ** is relatively small, which is similar to the advantages of Xiyuan closed **. Therefore, the capital protection** will use the vast majority of the money to invest, unlike the open-ended** to leave a sum of cash at any time to deal with the redemption, and it will be more passive in terms of redemption.

Through the above content, I believe we all know what is capital protection, and we need to analyze the market calmly and objectively when buying capital protection, and do not blindly follow the trend.

Principal preservation ** is a kind of bond that invests the vast majority of property in fixed income, and uses the very small part of the loan interest to invest in slightly riskier properties such as **, so as to complete the basic property appreciation of capital preservation. In other words, on the expiration date of the investment period, according to the investment results of the administrator, no matter how the current investment market falls, it will definitely not be less than the price of the loan guarantee, and the principal preservation effect will be achieved. Investors can redeem before the maturity date, but early redemption will not guarantee all returns.

2. Opportunity to start: Most of the capital protection ** only guarantees the ** market share subscribed during the subscription period, and the ** that starts during the subscription period does not enjoy the capital protection.

3. Be vigilant about the content of the provisions: The guaranteed amount of partial capital protection** includes the sum of the subscription amount, the subscription market share, and the interest expense during the fundraising period. However, there are some principal-protected lines that only include the subscription amount and do not have the subscription fee and the loan interest during the subscription period.

The above three points are the factors to be taken into account in the case of selecting capital protection**.

A "principal-protected type** and principal-protected** mean the same thing?" "The problem is getting a lot of attention, and I'll talk about what I understand. Let's talk about the details.

Is this principal-protected type**and principal-protected** the same meaning, of course it is the same meaning, it is just a little more concise description of this word. It means the same thing, and it also refers to the same thing. Principal-protected type**, it is the least risky one**, this **usually refers to the bond type**, its risk is particularly small, of course, its profitability is relatively weak.

Generally speaking, in the investment market, the greater the risk, the higher the return on investment. The bond type is more suitable for some investors who already have a lot of money. For example, if you already have 10 million funds, and you hope that you can use the 10 million to make money steadily, you don't need to pursue too aggressive returns, you just need it to make money for you stably, and don't lose money, then you are very suitable for choosing this bond type**, that is, the principal-guaranteed type**.

In addition to the principal-protected type, we also have the aggressive type, and the main point of the silver type is the type. **type** then its fluctuation is relatively large, earn may earn a lot, loss may also lose a lot, **type** is often provided to those who have slightly smaller funds to pursue higher utilization of funds, so that funds to earn more money this option can try our **type**. <>

If the three are hybrid**hybrid**, it is a combination of the above two, about half of the **type**, and about half of the **bond**. This kind of ** is that the risk is not too high and not too low, the return is not too high, and it is not too much to mention, in general, it is a relatively neutral state, and this is also a better choice.

After reading it, remember to like + follow + collect.

It's the same meaning, but with a slight difference, but in fact the meaning is the same, referring to the same thing.

The two basically mean the same thing, that is, on the basis of protecting your principal, you can earn some money, but the profit is definitely relatively small.

It's not the same meaning, the two have different relationships, and the two meanings are not the same in life.

What does principal-protected ** mean? The difference between capital protection and currency.

Investment capital protection is a relatively low-risk investment financial management method, so what does capital protection mean? I have compiled the following, let's take a look and understand what the principal-protected ** is!

What does principal-protected ** mean? It is understood that capital preservation is to provide a certain proportion of guaranteed capital protection for the principal invested within a certain period of time, and use interest or a very small proportion of assets to engage in high-risk investment, and most of the assets are engaged in fixed income investment, so that the investment market will not be lower than the guarantee of the investment market no matter what, and achieve the role of "capital preservation".

Some people may ask, principal-protected ** and currency** are both small risk and small return**, so what is the difference between the two? There are the main differences between principal-protected ** and currency**:

1. The subscription and redemption fees are different: there is no subscription and redemption fee for currency, and the subscription and redemption fee for capital protection is higher, which relatively increases the cost.

2. The income calculation method is different: the net value of the currency remains unchanged, always maintains 1 yuan, there is income every day, and it is recorded in the account on a monthly basis, which not only increases the share, but also enjoys compound interest. The return of capital protection** is reflected in the change in its net value.

Sometimes the net value is less than 1 yuan, and only when it reaches 1 yuan plus the subscription and redemption fee can it reach the cost, and when it is high, it can be regarded as a profit.

3. The holding time is different: the currency is convenient to hold in and out, and there will be a day of income in one day. Capital Protection** There is a requirement for the holding time, which is generally three years, and if the net value is lower than the par value during early redemption, the principal is not guaranteed.

4. Capital protection**, within a certain investment period (such as 3 years or 5 years), to provide 100% or higher guarantee of the principal invested by investors**.

5. Currency** does not promise to protect capital.

As an important investment tool in the investment market, it has always attracted the attention of all kinds of investors, and some investors do not have a high risk tolerance, but they also want to invest in **try, so they ask whether there is a principal-guaranteed type, such a question, in fact, there is a principal-guaranteed type, so let's take a look at it together.

**Is there a principal-protected type?

In the investment market, there is a type of capital protection**, which is a low-risk investment method that guarantees the principal. Generally speaking, the majority of the assets are invested in fixed income bonds to pay the investor's principal at the end of the maturity, and about 15%-20% of the remaining assets are invested in instruments such as ** to enhance the return potential.

Principal-protected type** needs to pay attention to the problem

First, if the capital protection period of capital protection ** has a single period, generally speaking, the capital protection period is generally 2-3 years;

Second, if the principal is guaranteed ** for redemption in the middle of the process, no guarantee of capital protection will be provided;

Thirdly, not all principal-protected types** offer 100% principal protection.

Is principal-protected ** necessarily principal-protected?

Under normal circumstances, unless the issuer goes bankrupt and liquidates, it will affect the redemption of the principal, which basically satisfies the safety of investors.

However, although the basic principal can be guaranteed, there is no guarantee of expected return, and for investors, if they can only redeem the principal and have no expected return between holding for a period of time, it is also a loss.

In addition, there is also a part of the risk from liquidity risk, issuer and market changes brought about by the risk. This is because capital preservation is not like the general open-ended redemption at any time, and some uncontrollable risks such as managers and market changes.

Investing in capital preservation** is a good choice, but many investors who have a wait-and-see attitude are very questionable: whether capital preservation** is guaranteed or not?

1. What is capital protection**?

1. Principal protection refers to the fact that investors can recover at least a certain agreed percentage of the investment principal when the investment contract expires. Capital protection is a kind of reciprocity of expected annualized expected returns, which guarantees that the investor's original investment is not subject to any loss, which is mainly used by insurance companies, and the investment object is a fixed expected annualized expected return variety. In essence, capital preservation is a balanced type, mainly through the strategic allocation of fixed expected annualized expected return assets (mainly bonds) and derivative financial products (options) in the portfolio to achieve the goal of value preservation and appreciation.

2. China's capital preservation ** includes: Cathay Golden Deer Capital Guaranteed Mix, Bank of Communications Capital Guaranteed Mix, Gold Yuan Bilian Gem Capital Guaranteed Mix, Southern Hengyuan Capital Guaranteed Mix, Southern Hedging Value-added Mix, Yinhua Capital Guaranteed Value-added Mix.

Second, the characteristics of the principal-guaranteed type

1. Principal protection.

The core feature of capital protection** is that investors can obtain a guarantee of principal when they hold ** at maturity, of course, if they redeem it early, they will not enjoy preferential treatment. Therefore, investors can protect their principal from loss by investing in capital protection**. In terms of risk characteristics, the investment risk of capital preservation is significantly lower than that of other varieties, which is especially suitable for investors who cannot bear the loss of principal, but hope to be able to participate in market investment to a certain extent.

2. Semi-closed.

Capital Preservation ** will stipulate a period of capital protection (**generally set a certain period of lock-in period, in China is generally 3 years, in foreign countries even reached 7 to 12 years), **holders only hold the capital protection ** maturity, in order to obtain the guarantee of capital protection, investors can get back the original investment principal, but if redeemed in advance, will not enjoy preferential treatment. Not only do investors bear the risk of fluctuations in their own equity, but they may also have to pay higher redemption fees. In addition, the subscription of ** is generally not accepted during the principal protection period.

This semi-closed nature makes capital preservation** more suitable for investors with medium and long-term investment goals.

3. Value-added potential.

Capital protection** ensures the safety of investors' principals at the same time, and shares the expected annualized expected returns of the market through the investment of ** or various financial derivatives. Compared with bank deposits or treasury bond investments, capital protection** has a higher appreciation potential, and at the same time guarantees the return on principal, it has a higher historical expected annualized expected return.