Is Nanfang Tiantianli Currency A guaranteed? The probability of losing principal is small!

Southern Tiantianli Currency A is a currency fund, similar to Yu'ebao, which can be purchased on Alipay. The expected return of Southern Tiantianli Currency A is relatively high, so does Southern Tiantianli Currency A maintain its capital? How likely is it to lose money? Let’s analyze it below.

Is Southern Tiantianli Currency A guaranteed? Southern Tiantianli Currency A is a fund. Except for the "capital-guaranteed fund", all funds neither guarantee capital nor guarantee minimum expected returns, including the familiar Yu'e Bao, so Southern Tiantianli Currency A does not guarantee capital. As for whether financial products are principal-guaranteed, this is only a theoretical question. In theory, only deposit products and treasury bonds are capital-guaranteed financial products. The rest of the financial products are not capital-guaranteed. However, not being capital-guaranteed does not mean it is unsafe. Yu’E Bao is not capital-guaranteed, but so many people are using it, so no one thinks it is unsafe. Therefore, there is no need to worry about the problem of Nanfang Tiantianli Currency A not maintaining capital.

Will Southern Tiantianli Currency A lose money? As a currency fund, Southern Tiantianli Currency A has the highest security among all funds. The risk level of money funds is low risk. They mainly invest in money market instruments such as certificates of deposit and treasury bonds and central bank bills. These investment types are highly safe and basically have no problems. Therefore, the security of money funds is also good. The funds lose money. Very unlikely. From a historical perspective, money funds have experienced losses, and two money funds have experienced negative expected returns. However, the impact of this situation on investors is very small, the principal will not be lost, and the impact on expected returns is also small. Generally speaking, the probability of loss of Nanfang Tiantianli Currency A is not high. Based on the above analysis, it can be seen that although Southern Tiantianli Currency A does not protect its principal, there is no problem with its safety. It is unlikely that the principal will be lost, so investors do not need to worry too much.