A hierarchical fund is a structured fund that divides fund shares into two types of fund (sub-fund) shares with different expected returns and risks through the arrangement of fund (parent fund) income distribution, and lists one or two types of shares for trading.

Securities Investment Funds.

Generally speaking, among the two types of shares divided by the basic shares of the fund, one is the part with lower expected risks and returns and enjoys priority in income distribution, which is called "Class A shares", and the other is the portion with even expected risks and returns.

The higher and second-priority portion of the income is called "Class B share".

Conservative sub-funds have low risks and low returns.

Radical sub-funds have high expected returns and high risks.

After the fund is established, the two types of shares will be merged and operated.

The distribution ratio of income is different and is chosen by investors.

Category A is suitable for investors who prefer low risk, and Category B is suitable for investors who prefer high risk and high returns.

If the situation is good and the operation is good, the conservative sub-fund must transfer benefits to the radical sub-fund; if the situation is bad and the operation is not good, the radical sub-fund must also ensure the basic income of the conservative sub-fund.

In order to meet the needs of investors with different risks and returns, tiered bond funds are divided into Class A and Class B according to different risks according to a certain proportion. Class A is a low-risk class, Class B is a high-risk class, Class A has a guaranteed return, and Class B has

There is a certain closing period, but the expected return may exceed Class A. However, ordinary investors with low risk needs may pay more attention to Class A, because the expected return agreed upon by Class A is usually higher than the one-year fixed deposit interest rate, which is for once

For investors who choose to focus on fixed deposits, it will be quite attractive.

However, judging from the current tiered bond funds issued by various fund companies, there are many differences in the agreed income standards for grade A. Although most of them increase on the basis of one-year time deposit interest rates, the agreed standards for each are within different interest rate cycles.

, there will be a difference in income.

Now let’s take three graded bonds that have been recently issued or are about to be issued as examples for comparison.

The A-level agreed return of Tianhong Tianli Fund is: 1-year bank fixed deposit (after tax) x1.3; the agreed return of Wanjia Tianli A-level is: 1-year bank fixed deposit (after tax) +1.1%; and

The A-level agreed rate of return for the Changxin Lixin Graded Bond Fund to be issued by Changxin is: 1-year bank fixed deposit (after tax) x 1.1 + 0.8%.

Only through calculation can we discover the difference in the A-level agreed returns of the above three funds under different interest rates.