The fund market is wide and large, and there are many kinds of funds, so many investors even have no way to start. Therefore, there will be a situation of graded funds. The main feature of graded funds is to divide fund products into two or more types of shares and give different income distribution respectively. Then, why is there a discount for graded funds?

Why are graded funds discounted?

When Grade B falls to a certain level, the graded fund as a whole will trigger a discount to ensure the capital safety of the graded A share investment. When the market is getting weaker and weaker, mostly when the net value is 0.25, we must ensure that we will not lose a when we continue to fall. In general, this is the case that the grading foundation has a discount.

If investors don't sell before the discount and ignore other problems of ups and downs after the opening, they will lose a premium part first, which is the real loss. Because the price of B in the transaction is generally higher than the real net value, and it is converted according to the net value after conversion. If the probability of rebound or reversal in the market outlook is high, and the decline required to trigger the discount is still large, investors can temporarily wait and see in the short term.

At present, the discount of graded funds is to ensure the capital safety of graded A share investment. When the market is getting weaker and weaker, most of them will be discounted at a net value of 0.25. Now the regulatory authorities have raised the investment threshold for classified fund transactions, which is also a good protection for investors.