Graded fund refers to a fund whose basic share is divided into two sub-shares of A/B with different expected risk and return by agreeing on the risk and return distribution of the fund in advance. A-share investors get fixed agreed income, while B-share investors enjoy income or take risks after paying the agreed income of A-share, and some or all of them can be listed and traded.

The basic fund is called the parent fund, the sub-fund with less risk is called the A share, and the sub-fund with greater risk is called the B share.