First, the advantages of graded funds
1. The investment form of graded funds has advantages. Investors can have low-risk preference or high-risk preference, which can be adjusted according to their risk tolerance. Share ratio of a and b;
2. Investors can flexibly allocate assets according to their own investment characteristics, such as risk tolerance, investment preferences and market trends;
3. Graded funds provide convenient, fast and low-cost fund investment methods for all kinds of investors.
Second, the disadvantages of graded funds
1, the leverage ratio is too large, and the risk is amplified.
Some leverage can reach 2 times or even more than 5 times, and the net value of the fund fluctuates greatly and the risk is high; However, there is no entry threshold for the graded market, and a large number of investors enter the market. Once the price suddenly falls, some investors have no higher ability to cope.
2. Fund discount may cause losses to investors.
Although the general fund discount has no effect on the overall net worth of investors, it may also cause value loss; In addition, if investors do not respond in time when the fund is discounted, there may be a risk of loss.
3. The grading fund market system is not perfect.
China's graded funds are still in the development stage, and the investment market will take advantage of the imperfect system and irregular market to make a premium and attract investors to arbitrage, thus causing some investors to suffer heavy losses.
These are the advantages and disadvantages of graded funds. I hope it will help everyone. Warm reminder, financial management is risky and investment needs to be cautious.