2. The leverage of graded funds is one of the important indicators that investors can refer to when purchasing graded funds. Leverage can be divided into initial leverage, net leverage and price leverage, and different definitions represent different meanings. Among them, investors should be most concerned about price leverage.
Price lever formula: price lever = total net value of parent fund/total market value of B share.
= (number of shares of parent fund × net value of parent fund)/(number of shares of B × price of shares of B)
= (parent fund net value /B share price) × initial leverage
= net leverage /( 1+ premium rate)
Price leverage can be better used to analyze the relationship between the price fluctuation of B share of graded fund and the fluctuation of parent fund's net value. In terms of specific investment choices, funds with high price leverage have better flexibility and higher gains when the market rises. Investors with band operation can choose investment targets according to price leverage.