Index grading fund is a grading fund product based on index investment, in which grading share contains leverage mechanism, which is an innovative variety of index fund. Parent funds are generally divided into class A priority funds and class B inferior funds. The investment income of the parent fund is leveraged, the risk is greater than that of the general fund, and the investment income will be higher. Among them, the holder of share B pays the agreed interest to the holder of share A every year.

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In the upward trend, it will be better to invest in those large-cap index funds. Large-cap index funds are funds that track the Shanghai Stock Exchange and Shenzhen Stock Exchange, and often have many constituent stocks. In the case of a good trend, the performance of the market index will certainly not be bad.

Investment index funds don't need to be too diversified. Investment is risk diversification, and the fund itself is risk diversification. The stock portfolio in index funds is the second risk diversification, and then the third risk diversification. In this way, all opportunities will be divided up, but the income will be reduced.

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