Graded fund is a structured fund, which is divided into two types: A and B. Graded fund A has less expected annualized expected return but good stability, while graded fund B has high expected annualized expected return and high risk. Of course, each method has its own calculation method. What is the formula for calculating the expected annualized expected return of graded fund A?

what is graded fund a?

share a is the part with relatively low risk and expected annualized expected return among the sub-shares of graded funds, and share b is financed from share a and pays the agreed interest of share a. Share A has bond attribute+put option (perpetual stock classification is applicable):

The discount clause of graded fund determines the bond nature of graded A, and its implied expected annualized expected return center is near AA-rated 1-year corporate bonds.

The discount clause of graded funds and the phenomenon of discount premium of A make graded A have binary options value.

Grade A is usually the "dish" of institutions, such as insurance institutions, but at certain nodes, especially when the unilateral bull market ends, more and more retail investors realize the value of Grade A and join in the investment of Grade A..

formula for calculating the expected annualized expected rate of return of graded fund a: