The grading models of stock (index) grading funds mainly include financing grading model and long-short grading model. Bond-type graded funds are financing graded. Currency graded funds are graded long and short. Grading model Sub-fund type Sub-fund characteristics Split ratio, initial share leverage financing grading (stock and bond grading) Agreed income Class A has agreed income, regular conversion and dividends Stock type generally has an A:B ratio of 50:50 (Class B 2 times the initial Leverage) or 40:60 (Class B 1.67 times initial leverage), bond type 70:30 (Class B 3.33 times initial leverage) Leverage share Class B has irregular conversions when the net value is less than or greater than a certain value, and most of them do not have regular conversions Empty grading (butterfly grading) Leverage share Class B has regular conversions (every 3 months to 1 year). When the net value is less than or greater than a certain value, there are irregular conversions, mainly index type. The B:C ratio is 2:1 (Class B initial leverage is 2 times, B ≤ 0.3 or B ≥ 2 yuan and is converted from time to time; Class C initial leverage is negative 1 time) or 3:1 (Class B initial leverage is 2 times, B ≤ 0.3 or B ≥ 1.5 yuan, irregular conversion; Class C initial leverage is negative 2 times) Reverse leverage Class C has regular conversion (every 3 months to 1 year) and irregular conversion, inversely proportional to the rise and fall of the fund of funds, except for the above two In addition to this model, there are three tiered funds with more complex tiered models: Ruihe CSI 300, Xingquan Herun, and Shenwan Shencheng (see the "Development History" section).

The popular explanation of the financing graded fund is that the assets of the A share and the B share are invested as a whole, and the holders of the B share pay agreed interest to the holders of the A share every year. As for the payment of interest The overall investment profits and losses will be borne by B share. Take a certain financing grading model tiered fund product All remaining assets after principal and accrued income are attributed to B shares, and losses are borne by B share holders to the extent of the net asset value of B shares. When the overall net value of the Fund of Funds falls, the net value of Share B will fall first; correspondingly, when the overall net value of the Fund of Funds rises, the net value of Share B will increase in value faster after providing the income of Share A. Share B usually obtains a certain degree of leverage by participating in the distribution of residual income or bearing losses to a greater extent. It has a more complex internal capital structure, and its nonlinear income characteristics make it implicit in options.

Based on the investment nature of hierarchical FOFs, FOFs can be divided into hierarchical stock funds (most of which are hierarchical index funds) and hierarchical bond funds. Graded bond funds can be divided into pure debt graded funds, hybrid bond graded funds, and convertible bond graded funds. The difference is that pure debt funds cannot invest in stocks, while hybrid bond funds can invest no more than 20% of their assets in stocks, and convertible bonds Tiered funds invest in convertible bonds.

According to the nature of the hierarchical sub-fund, the Class A shares in the sub-fund can be divided into time-limited Class A agreed income share funds and perpetual Class A agreed income share funds; Class B shares in the sub-fund Also known as leveraged funds. Leveraged funds can be divided into stock-type B-type leveraged share funds (most of which are leveraged index funds), bond-type B-type leveraged share funds (leveraged debt bases), inverse leveraged funds, etc.