Graded funds are usually divided into priority fund shares and general fund shares. The basic share is the same as the general fund. The annual benchmark rate of return of priority fund shares refers to the rate of return that priority fund shares get priority distribution every year. It is usually based on a fixed annualized rate of return, showing the characteristics of low risk and low return; The income of the general fund can only be obtained after the basic income of the priority fund is met, but for the excess income, the general fund can get all or a relatively large share, showing the characteristics of high risk and high income.
The advantage of graded funds lies in their various forms, which can meet the needs of investors with low risk preference and high risk preference respectively; Investors can allocate assets conveniently and flexibly according to their own investment characteristics and market trends; Graded funds provide convenient, fast and low-cost fund investment methods for all kinds of investors.
Many investors believe that the Class A share of graded funds, like bank deposits, can not only ensure the safety of principal, but also ensure a certain income. In fact, the Class A share of graded funds in the domestic market at present is not a product with guaranteed income.
Because the market faces many risks, the distribution of benchmark income and the guarantee of principal security are uncertain. When the net asset value of Class B shares drops sharply, Class A share investors may still face the risk of investment damage.