What many friends are most worried about in the process of financial management is the financial security of financial management. As for tiered funds, how safe is the Class A tiered fund? Today we will introduce it to you.

Graded Fund Category A

Graded Funds are also called "structural funds". They refer to the formation of two levels under an investment portfolio by decomposing the expected income or net assets of the fund. (or multi-level) fund types with certain differentiated fund shares in expected risk and return performance.

Graded funds include parent funds, Class A tiered funds, and Class B tiered funds. Generally speaking, the investment style of grade A is more conservative, and the investment style of grade B is more aggressive. The grading is similar to a bond, and the default risk of this bond is much lower than that of exchange bonds. As long as B does not lose all money, the principal and interest of A are guaranteed.

Will Class A Class Funds Lose Money

Generally speaking, like bonds, when market interest rates rise, the price of Class A will fall; when market interest rates fall, the price of Class A will will rise. So will graded fund Category A lose money?

1. When the loss of share B has not triggered the lower discount point (the general standard is 0.25), the fund of funds continues to touch the lower limit before the fund company starts to discount. At this time, share A may suffer losses. , but the possibility of this situation is very small.

2. Although the possibility of loss in the net value of Class A shares is small, because they are perpetual bonds, investors purchase them at market prices, so fluctuations in market prices may also cause losses to holders of A shares. Loss.

To sum up, Class A tiered funds may lose money only when Class B completely loses money. Under normal circumstances, the corresponding principal and interest will be obtained; however, market risk is also an important source of risk, so investment Investors should choose investment objects carefully and carefully to reduce the possibility of losses.

That’s all for the above content on whether Category A graded funds will lose money. I hope it will be helpful to everyone. Warm reminder, financial management is risky, so investment needs to be cautious.