Index grading fund is a kind of investment product based on index fund for leveraged trading. It refers to a way to use the volatility of the basic index to obtain higher returns through leverage. This kind of fund has low management cost and high leverage, which can greatly improve the actual investment income.

The operation mode of index grading fund is relatively simple, and the investment strategy is to buy or sell according to the fluctuation of basic index. The investment risk of this kind of fund is relatively low, because the fund manager's operation does not rely on the short-term operation of buying and selling individual stocks to obtain income, but is based on the comprehensive market of the whole securities market economy, thus avoiding the risk brought by local stock market fluctuations.

One advantage of the index grading fund is its high leverage level. It can directly obtain the maximum income by using the raised stock market, which is very suitable for high investors in rate of return on capital, but we should also pay attention to the risks of leveraged trading. The shortcomings of index grading funds are also obvious. Due to the limitation of fund size, its flexibility is low, and it is impossible to maximize the rate of return through stock selection.

Generally speaking, the index-graded fund is a relatively low-risk investment product, which can obtain higher investment income through lower management cost and higher leverage. However, investors should also note that this fund is suitable for higher investors in rate of return on capital, while some investors with strong risk awareness should pay attention to risk protection measures.