The principle of long-short graded fund is to divide the fund assets into two sub-funds, one is invested in bullish assets such as stock market or stock index futures, and the other is invested in bearish assets such as national debt and money market instruments. When the stock market rises, long sub-funds appreciate and short funds depreciate; The stock market fell, many funds depreciated, and empty funds appreciated. Through this mechanism, no matter whether the market goes up or down, investors may gain profits as long as they grasp the opportunity and strategy.
However, there are also some risks in long-short graded funds. Because such funds involve complex investment strategies and derivatives trading, they may face higher risks. In addition, the fees and costs of long-short graded funds are usually high, which may affect investors' income. Therefore, investors need to fully understand the risk-return characteristics when investing in long-short graded funds, and fully consider their own risk tolerance when making decisions.
In short, the long-short graded fund is a complex investment tool, which allows investors to make long-short investment strategies at the same time. By dividing the fund assets into two sub-funds, one sub-fund invests in bullish assets such as stock market or stock index futures, and the other sub-fund invests in bearish assets such as treasury bonds and money market instruments, investors can seize opportunities when the market fluctuates, and they will have the opportunity to gain income regardless of whether the market is up or down. However, there are certain risks in long-short graded funds, and investors need to fully understand their risk-return characteristics and fully consider their risk tolerance when making decisions.