Graded fund is a special open-end fund, which is divided into two levels: first-class fund and second-class fund. Tier 1 funds are usually ordinary open-end funds, while Tier 2 funds are structured products similar to bonds. The investment strategy of tier-one funds is mainly to pursue higher returns, while tier-two funds are responsible for providing leverage to improve investment returns.

Specifically, investors in Tier 1 funds can choose to buy common shares or graded shares. Ordinary share investors enjoy the normal returns and risks of the fund, while graded share investors can get higher returns, but they also have to bear higher risks. The income of graded shares mainly comes from the investment income of secondary funds.

Graded funds are characterized by relatively high risks and returns, which are suitable for investors with high risk tolerance. Due to the leverage effect of secondary funds, the income of graded funds may be higher than that of ordinary funds, but there are also great fluctuations and risks. Therefore, investors need to carefully evaluate their risk tolerance and investment objectives when choosing graded funds.

In a word, graded fund is an investment tool that provides higher returns through leverage effect, but it is also accompanied by higher risks. Investors should evaluate graded funds according to their own conditions and invest cautiously.

I hope the above information is helpful to you.