Graded fund is to divide the fund products into two or more types of shares and give different expected income distribution respectively. For investors, on the one hand, graded funds can meet their value-added needs, on the other hand, they can achieve value preservation. So, what are the advantages and disadvantages of graded funds compared with ordinary funds? What's the difference between them? Let's take a look at it next.

Advantages of graded funds over ordinary 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 own risk tolerance and the share ratio of A and B.

2. Investors can flexibly allocate assets according to their own investment characteristics and market trends.

3. Graded funds provide convenient, fast and low-cost fund investment methods for all kinds of investors.

Disadvantages of graded funds compared with ordinary 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.

I have said so much about the difference between graded funds and ordinary funds, hoping to help everyone. Warm reminder, financial management is risky and investment needs to be cautious.