A graded fund refers to a fund that divides risks and benefits into different shares. In China, classified funds are mainly financing classified funds, which are divided into two shares, A and B. B pays interest to A to gain leverage. If the net value of B is too low, it will affect the security of A's principal, so there will be a discount. How to calculate the discount of graded funds?

How to calculate the discount of graded funds?

There is a threshold for B-level downward folding, and once it reaches this threshold, it will be folded downward. At the time of discount, B's share will be merged to improve its unit net value, and then A's share will be reduced to restore the ratio between A and B to the original level, and the reduced share will be distributed to new investors.

At present, most graded funds agree to discount when the net value of Grade B drops to 0.25 (the initial value is 1), and the share of Grade B is converted into a quarter of the original value accordingly, so that the net value is quadrupled to 1, Grade A is converted into a quarter of the original value of Grade B correspondingly, and the other three quarters of assets are distributed to investors.