From the perspective of long-term investment, due to the leverage characteristics of Class B, it is highly volatile. Generally speaking, basic stocks and Class A stocks are more suitable for long-term holding. The basic share is equivalent to an index fund, and the Class A share is similar to a credit bond, which can be held at maturity to obtain an agreed rate of return. In addition to long-term holding, the most mainstream investment methods of index grading funds are different share rotation investment and band operation. In band operation, Class A share is suitable for stable investors who prefer fixed-income products. Judging from the existing holder structure, it mainly includes enterprise annuity, insurance funds, etc. And investment opportunities can be invested when the market starts to fall, especially when irregular downward conversion is expected, because Class A stocks imply put options. B shares are suitable for radical investors with high risk appetite and pursuing capital efficiency. Judging from the existing holder structure, it is mainly brokerage, asset management and QFII self-management. The timing of investment is opposite to that of class A share investment. When the market continues to fall for a period of time and the rebound expectation is strong, it is just a good opportunity to switch to Class B share.
Compared with the first two types of operating strategies, the arbitrage trading of graded funds is much more complicated, and many different investment methods are derived. Because the A and B share investment groups of index grading funds are different, there will often be an overall discount premium, and the arbitrage space is larger than ETF. Specifically, arbitrage trading can be divided into six types, including discount arbitrage, stock index futures hedging risk arbitrage, risk-free discount arbitrage, margin financing and securities lending portfolio arbitrage, ETF portfolio arbitrage and spot arbitrage.