Why did the graded fund withdraw from the market?
The delisting of graded funds is due to the new regulations on asset management. The new asset management regulations of 20 18 stipulate that the wealth management products with guaranteed capital and interest must be delisted before the end of 2020, and the A share in the graded fund will stipulate fixed income, which belongs to the wealth management products with guaranteed capital and interest, which does not conform to the new joint venture management regulations.
Why does graded fund A protect the principal and interest? We need to know the mechanism of graded funds:
The graded fund is divided into two parts: A and B. B pays interest to A and invests with A's funds. B's profit and loss is leverage, while A's income mainly comes from interest. If the market is not good, B's leverage will be particularly large, and at this time A's principal will be lost, so a discount will be made to ensure A's safety.
So is the graded fund absolutely safe? Actually, it is not. In some extreme cases, Grade A may also lose money, that is, when the net value of Grade B is very low and the next discount point is about to be touched, and the market is extremely poor, there is a certain possibility that share B will just lose money, and the rest of the loss will be borne by share A. ..