Leveraged fund is an investment tool. In the process of investment, we can increase the return on investment and improve the risk-return ratio by borrowing funds. It appears in the form of a fund and is managed and operated by a professional investment manager. Leveraged funds basically invest a small part of their own funds and borrow a lot of money to amplify their income.

The advantage of leveraged funds is that they can improve the return on investment. Because of the high utilization rate of borrowing funds, the return can be much higher than that of leverage-free funds with the same investment In addition, leveraged funds can give investors more investment opportunities because they can borrow capital to get greater returns. However, the risk of leveraged funds is also directly proportional to its potential income, because the increase of loan interest rate will lead to the increase of debt and risk.

For investors with high risk tolerance, rich market experience, sufficient funds and optimistic about investment returns, leveraged funds are very attractive. In addition, the fund is also suitable for investors with a small amount of funds, because they can participate in leveraged funds with a small investment amount and get a relatively high return on investment. However, for those conservative investors who pursue stability, leveraged funds are not a good investment choice. Because the risk of leveraged funds is too high, it may lead to serious losses.