According to the nature of the parent fund, it can be divided into two categories. One type of parent fund is an index fund, and every three parent funds can be divided into 1 1 double-empty shares and two or more times shares according to the ratio of 1: 2, or every four parent funds can be divided into 1 double-empty shares and three or more times shares. Another kind of parent fund is the money fund, which is divided into two times more shares and two times equal empty shares, or every three parent funds are divided into two times more empty shares 1 and 1, which can be regarded as low-leverage mini stock index futures.
There are three kinds of share designs for long-short graded funds: parent share, bullish share and bearish share. Its main feature is to provide investment leverage amplification effect, and it can also be used as a safe-haven investment tool in the falling market. For example, buy high-quality stocks, and when the market is not good, buy "bearish" stocks to hedge risks. The existing long-short funds to be issued are all index funds. Different from the traditional classification, it has a simple hedging function and is especially suitable for investors who have the judgment of market trend direction.
The holders of long and short shares of long and short funds must be high-risk expected annualized expected returns and have strong risk-taking ability. Its expected annualized expected return depends on the grasp of the index trend, and the expected annualized expected return is characterized by high risk and high expected annualized expected return. The difference between long-short graded funds and traditional graded funds is that share A can make money in a falling market and become a hedging tool when the market index falls, which is equivalent to mini futures. In addition, due to high leverage, long-short graded funds are more volatile and riskier than traditional graded funds, which embodies the characteristics of high risk and high expected annualized expected return.