In the market of daily investment funds, we always hear the discount of graded funds. The so-called discount is one of the irregular discount methods of funds. So is the discount of graded funds good or bad? What is the impact on ordinary investors? Let's take a look together.

the essence of the discount of graded funds

the essence of the discount of graded funds is equivalent to the expected income distribution of share B when the parent fund achieves a large increase. The current policy is that the net value of the parent base will be discounted after reaching a certain value, so that the net value will return to the initial price of the net value and the holding share will increase.

is it good or bad to grade the fund's discount

We know that the discount means that the fund keeps rising, and B's profit is increasing. At this time, because the part of A remains unchanged, the overall leverage effect is decreasing. Generally speaking, the leverage effect decreases when the net value rises, and increases when the net value falls. After the discount, the B shares held by investors become A and B, and investors can get dividends, that is, they rise to a certain extent and the fund company realizes them.

1. Because of the premium, in the initial conversion stage, if the rise and fall are not considered, the expected return on net worth is reduced a little in a certain sense;

2. Many investors tend to invest in B, so they may sell their share of A. In this case, the price of A may fall.

What is the impact of fund discount on ordinary investors

Although the discount will not have a big impact on investors, there will still be some losses after conversion, but the increase occurred at a better stage of the market, and the profit level of the fund is still good, which also represents the upward performance of the fund market.

In addition, no matter whether it is a discount or a discount, this kind of behavior will cause losses to investors, so investors should pay attention to the leverage effect of funds to better operate their funds.

That's enough about whether the discount of graded funds is good or bad. I hope it will help you. Warm reminder, financial management is risky and investment needs to be cautious.