What is a long-short graded fund?
There are three kinds of share designs of empty graded funds: parent share, bullish share and bearish share. Generally speaking, short share is A share, and long share is B share. Its main feature is to provide investment leverage amplification effect, and it can also be used as a safe-haven investment tool in the falling market.
How to buy long and short graded funds?
It is particularly important that the conversion of 1, parent share and long-short share may not be completed smoothly and on time.
2. Long and short funds are products with high risks and expected annualized returns. The degree of grasping the market trend determines the success or failure of investment, and the investment strategy is best to use right-handed trading;
3. Invest in leveraged long-short funds that suit you, and pay attention to the characteristics of risk expectation and annualized expected return of long-short shares, especially the maturity conversion of sub-shares and the forced stop loss mechanism of sub-shares.
4. When the market fluctuates greatly, it is necessary to judge in advance the liquidity obstacles that may be encountered in the on-site application for share conversion.
The product design of long-short graded funds is much more complicated than that of ordinary funds, which requires investors to study the product specifications carefully, especially the different long-short leverage determines the speculative opportunities of graded share holding strategies.
Investors need to have a good grasp of market trends and are more suitable for investors with certain market experience to participate. Long-short graded funds are suitable for speculators with high risk appetite, but not for ordinary investors with low risk tolerance. However, it should also be noted that this product can be used as a hedging tool, which is suitable for investors with risk tolerance.