Graded fund is to divide the fund products into two or more types of shares and give different expected income distribution respectively. For investors, on the one hand, graded funds can meet their value-added needs, on the other hand, they can achieve value preservation. Then let's take a look at the difference between ordinary funds! I hope it will help everyone! For reference only!

Advantages of graded funds over ordinary funds

1. The investment form of graded funds has advantages. Investors can have low-risk preference or high-risk preference, which can be adjusted according to their own risk tolerance and the share ratio of A and B.

2. Investors can flexibly allocate assets according to their own investment characteristics and market trends.

3. Graded funds provide convenient, fast and low-cost fund investment methods for all kinds of investors.

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 graded market, and a large number of investors enter the market. Once the price suddenly falls, some investors have no higher ability to cope.

2. Fund discount may cause losses to investors.

Although the general fund discount has no effect on the overall net worth of investors, it may also cause value loss; In addition, if investors do not 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, and the investment market will take advantage of the imperfect system and irregular market to make a premium and attract investors to arbitrage, thus causing some investors to suffer heavy losses.

The difference between ETF fund and common fund;

1. Ordinary open-end funds cannot be listed and traded, while ETF funds can. On-site trading is in the secondary stock market, and some fund types can be listed and traded, such as closed-end funds, LOF funds and ETF funds. ETF fund is a trading open index fund, also known as exchange-traded fund.

2. General funds are open-end funds, and the total share is not fixed. Every day, a large number of people apply for redemption. When the total redemption amount is greater than the total subscription amount, it is called net redemption. In order to meet the demand of net redemption, open-end funds will set aside at least 5% cash to deal with this situation, so the investment position of ordinary funds can reach 95% at most, but it is impossible to reach 100%.

ETF fund positions traded on the floor can reach 100%. Because the share is fixed, people who want to buy the fund will buy it from others, which will not have any impact on the total assets of the fund.

ETF fund features:

ETF (Exchange-traded Fund) is an open-end fund with variable fund share, which is listed and traded on the exchange. ETF combines the operating characteristics of closed-end funds and open-end funds.

Investors can not only buy and sell in the secondary market of the exchange like closed-end funds, but also purchase and redeem like open-end funds. In the primary market, large investors can exchange shares in a package (subscription) and exchange shares in a package (redemption), and it is difficult for small and medium investors to participate. In the secondary market, both large investors and small investors can trade ETF shares at the market price. ETF tracks the selected index, which is essentially an index fund. Compared with traditional index funds, ETF trading is more convenient and cheaper.

What's the difference between pension funds and general funds?

1, different names.

Pension fund is a pension target fund. According to Article 11 of the Guidelines for Pension Target Securities Investment Funds issued by China Securities Regulatory Commission, pension target funds should include the words "pension target" in their names and reflect their investment strategies. Funds that adopt the target risk strategy should also indicate the product risk level in the fund name.

Other ordinary public offering funds shall not use the word "pension".

2. The investment period is different.

Pension funds aim to pursue long-term stable appreciation of pension assets, encourage investors to hold them for a long time, and stipulate that the closed operation period or the shortest holding period of pension target funds shall not be less than 1 year.

Other ordinary funds generally do not have a holding period, and investors are more free to purchase and redeem.

3. Different investment objects.

Pension funds belong to FOF funds, and should be operated in the form of funds in funds or other forms recognized by China Securities Regulatory Commission. The Fund invests in stocks, equity funds, hybrid funds and commodity funds (including commodity futures funds and gold ETFs).

Most other ordinary funds invest in equity assets such as stocks and bonds.

4. Different investment strategies.

Investment strategies of pension funds include target date strategy, target risk strategy and other strategies approved by China Securities Regulatory Commission.

Ordinary funds decide their investment strategies according to the types of funds, such as partial stock funds investing in stocks, partial debt funds investing in bonds, index funds or passively tracking their underlying indexes.

5. The rates are different.

Pension target funds can set preferential fund rates and encourage investors to hold them for a long time through differentiated rate arrangements.

General fund rates are generally fixed, and subscription rates cannot be discounted.