A share and B share are invested as a whole, in which the holder of B share pays the agreed interest to the holder of A share every year, and the overall investment profit and loss after paying the interest shall be borne by B share. ..
Take a graded fund product X(X is called parent fund) as an example, which is divided into A share (agreed income share) and B share (leveraged share). Share A agrees on a certain rate of return, and the remaining assets of fund X after deducting the principal and accrued income of share A are all classified as share B, and the losses are borne by the holders of share B within the limit of the net asset value of share B. ..
When the overall net value of the parent fund falls, the net value of share B falls first; Accordingly, when the overall net value of the parent fund rises, the net value of the B share will appreciate faster after providing the A share income.
Share B usually gains certain leverage by participating in the distribution of residual income or taking losses to a greater extent, which has a more complicated internal capital structure and its nonlinear income characteristics make it imply options.
Extended content:
Structured Fund, also known as "structured fund", refers to a fund variety with two levels (or multiple levels) of risk-return performance with a certain differentiated fund share by decomposing the fund income or net assets under a portfolio. Its main feature is to divide the fund products into two or more types of shares and give different income distribution respectively. The sum of the products of the net value of each sub-fund of the graded fund and the share ratio is equal to the net value of the parent fund. For example, the net value of the parent fund split into two types of shares = the net value of class A sub-base X A share%+the net value of class B sub-base X B share%. If the parent fund is not split, it is a general fund.