There are many kinds of funds. As investors, we'd better have a clear understanding of the differences between different funds. What I want to tell you today is the difference between graded funds and general funds.

What's the difference between graded funds and ordinary funds?

The difference between graded funds and ordinary funds is that the share of graded funds contains leverage mechanism. When the market rises, it has the opportunity to obtain investment income outside the index, which is an innovative variety of dry index funds. Ordinary funds do not have the characteristics of hitting the pole, and the investment income is distributed according to the investor's share. And the graded foundation is divided into two or more types of shares and given different income distribution. General funds will not be share split.

1. The cooperation form of graded funds has an excellent buffer. Partners can have low-risk preference or high-risk preference, and the proportion of A and B can be adjusted according to their own risk tolerance.

2. Partners can flexibly allocate assets according to their own cooperation characteristics and market trends.

3. Graded funds provide convenient, fast and low-cost fund cooperation methods for various partners.

Disadvantages of graded funds compared with ordinary funds;

1, the leverage ratio is too large, and the risk is amplified.

Some leverage can reach 2 times or even more than 5 times, and the net value of the fund fluctuates greatly and the risk is high; However, there is no entry threshold for the grading market, and a large number of partners enter the market. On a certain day, the price suddenly drops, and some partners have no higher coping ability.

2. The discount of the fund may cause losses to the partners.

Although the general fund discount has no effect on the overall net worth of partners, it may also cause value loss; In addition, if the partners fail to respond in time when the fund is discounted, there may be a risk of loss.

3. The grading fund market system is not perfect.

China's graded funds are still in the development stage. In the cooperative market, imperfect system and irregular market will be used for premium, which will attract partners to arbitrage, thus causing some partners to suffer heavy losses.