Hierarchical leveraged fund is a new product of hierarchical fund. Shenwan Paris Shenzhen Stock Exchange Index Grading Fund was officially issued on September 3, 20 10. As the first open-ended graded fund in China that tracks the classic index-Shenzhen Component Index, the fund adopts a relatively optimized grading mechanism, which can meet three types of investors who tend to invest in index, prefer fixed income and pursue leverage respectively, and the listing of two types of shares meets the trading needs of investors in the secondary market. Investors who subscribe for the base share in the market can choose to split it into A and B shares with different risks and returns according to the ratio of 5: 5. Among them, Shenwan's income A share is similar to fixed income products, and it enjoys the right to give priority to ensuring the safety of principal, and obtains the agreed income of 1 year time deposit, with the after-tax interest rate of+3%; Shenwan enterprising B share is equivalent to borrowing funds from Class A share, and amplifying income and leverage at the above cost. It is precisely because of borrowing funds that Class B shares generally pay "interest" on a certain benchmark of Class A shares. The initial leverage of the fund is about 2 times. With the rise and fall of Shenzhen Stock Exchange Index, the leverage ratio is dynamically adjusted. Compared with similar funds, its ultimate leverage ratio is the largest among existing graded funds, that is, when Shenwan's enterprising share drops to 0.65438+ near 0 yuan, the leverage ratio can reach about 1 1 times.