What is fund discount? Fund discount means that in order to protect the interests of holders of A shares, according to the contract, when the net value of B shares of graded funds is lower than a certain threshold (at present, the discount threshold of most stock-based graded funds is set at 0.250 yuan), graded funds will be triggered to convert down irregularly.

A share holder will get the parent share, and B share holder's share will be reduced according to a certain proportion. Convert A share into A share equal to B share, and convert the remaining share into parent fund with a net value of 1 yuan. After the share conversion, the shares will be closed at 9:30- 10:30 on the first trading day and the second trading day after the share conversion.

Is the fund discount good or bad?

Fund discount is the regulation of domestic graded funds. The main purpose of setting up the fund discount clause is to provide income protection for A share and prevent B from completely losing money under extreme leverage. Fund discount has different effects on different holders.

B share holder: the net value remains unchanged before and after the conversion, but because the share is calculated according to the net value, the discount premium will be lost, resulting in large price fluctuations.

A share holder: the net assets of the corresponding fund remain unchanged after conversion, and the number of A shares held is reduced. If the share of the parent fund increases, it will also lose the discount premium of A-share price assets, resulting in greater fluctuations.

Parent fund share holder: the net asset value of the parent fund held before and after conversion remains unchanged. Parent fund share holders inside and outside the market get the share of the parent fund in the market.

Note: Don't wait until the benchmark date of discount. At this time, there is no selling opportunity for the limit, and you can't participate in the discount. Try to avoid participating in the fund discount and reduce the risk.