Graded funds, also known as "structured funds", refer to the types of funds that show two-level (or multi-level) risk-return performance with a certain differentiated fund share by decomposing the fund income or net assets under a portfolio. Its main feature is to divide the fund products into two types of shares and give different income distribution respectively. Usually divided into two types of shares: low-risk income side (agreed income share) sub-fund A share and high-risk income side (leveraged share) sub-fund B share.

Take a graded fund product X(X is called parent fund) as an example, which is divided into A share (agreed income share) and B share (leveraged share). Share A has agreed on a certain rate of return, and all the remaining assets of fund X after deducting the principal and accrued income of share A are classified as share B, and the losses are borne by the holders of share B within the limit of share B's net asset value. When the overall net value of X falls, the net value of B shares falls first; Accordingly, when the overall net value of X rises, the net value of share B will also rise before share A. Priority stocks can generally get the distribution benchmark income first, and enterprising stocks can maximize the compensation for the principal and benchmark income of priority stocks. Aggressive shares usually gain some leverage by participating in the distribution of residual income or taking losses to a greater extent. It has a more complex internal capital structure, and its nonlinear income characteristics make it imply options. The popular explanation is the overall investment of assets with share A and share B, in which the holder of share B pays the agreed interest to the holder of share A every year, and all the overall investment profits and losses after paying the interest are borne by share B. ..