The formula for calculating the parent fund of hierarchical funds:

The net value of the parent fund = 1/2 (the net value of sub-fund A share fund + the net value of sub-fund B share fund). The net value of each sub-fund of the hierarchical fund and the share ratio are The sum of the products equals the net value of the fund of funds. This fund is a tiered fund product based on indexed investment. The tiered shares contain a leverage mechanism. When the market rises, there is an opportunity to obtain investment returns that exceed the index. It is an innovative variety of index funds.

There are generally three types of leverage in tiered funds: Share leverage = (Class A share + Class B share) / Class B share net value leverage = (Net value of parent fund / B share net value) * Share leverage Price leverage = (Net value of parent fund/B share price) * share leverage. Share leverage is usually fixed. The general A:B ratio of stock-type tiered funds is 5:5 (2 times the initial leverage of Class B) or 4:6 (Class B 1.67 times initial leverage), bond type 7:3 (Class B 3.33 times leverage).