The graded fund is an innovative Public Offering of Fund product specially designed for small and medium investors. From the perspective of product design, this kind of fund skillfully divides the fund into two types of shares with completely different risk-return characteristics by arranging the income distribution of the parent fund, in which share B obtains the leverage attribute by paying a certain financing cost to share A.

The graded products here are not limited to stock funds, but also include bond funds and closed-end and semi-closed products. Most bond funds in closed and semi-closed graded funds cannot be converted in pairs, while most stock graded funds can be converted in pairs.

The main purpose of discount is to provide income protection for share. At the same time, when the market falls and the leverage of share B increases, the discount can restore the leverage to twice, so as to avoid losing all the money of share B in extreme cases.