1. What is a graded fund?
Generally speaking, graded funds divide the parent fund products into AB shares and give different expected annualized expected returns. Investors with Class A shares get fixed expected annualized expected returns every year, while investors with Class B shares enjoy expected annualized expected returns or bear residual risks after paying the expected annualized expected returns of Class A shares.
2. What is fund discount?
Generally speaking, the upper discount is a sign of a bull market, and the lower discount is only available in a bear market. In addition to the market background, the profits and losses brought by the discount and the discount to investors are also very different. After the discount, the daily limit is often continuous, and the losses brought by the discount to investors are shocking. To be a graded fund, especially a B, we can't help but understand the discount, just as margin financing and stock index futures can't help but understand forced liquidation.
In order to calculate the net value conveniently, realize the expected annualized expected return of investors in time, and make the fund assets not excessively inflated and difficult to operate, it is necessary to carry out regular and irregular conversion. There is a discount clause in the graded fund, that is, when the graded B falls to a certain level, the graded fund as a whole will trigger a discount, and when the net share value of the graded B is less than 0.25, most stocks will be discounted. After the discount, because the net asset value remains unchanged, the investor's account share will decrease accordingly.
Conversion principle: In general, the net values of A, B and C all belong to 1.0 yuan, the asset value remains unchanged before and after conversion, the A:B ratio remains unchanged, and the capital leverage returns to the initial state.
What is the difference between fixed investment in funds and buying funds?