What problems should we pay attention to when investing in graded funds?
1, leveraged trading risk
The graded fund consists of a parent fund and two sub-funds A and B, and the graded fund B is leveraged. Usually, when the parent fund rises or falls, the rise or fall of the graded fund B is twice that of the parent fund.
With the fluctuation of Class B net value, the leverage ratio of graded funds is constantly changing, and the initial state is only 2 times leverage. Leveraged trading is a double-edged sword. When the stock invested by the parent fund rises sharply, investors may get an unexpected return on investment. But when the stock falls, the leverage will also amplify the investment risk, and the foundation will double down. Investors often see that the graded fund B has a great rise and fall, which is the reason.
2. Discount premium risk
Graded funds can be redeemed off-site according to their net value, or listed and traded on the market, so graded funds have both net value and price data.
The net value of the fund is updated every day, but there is only a certain value every day. The fund price fluctuates around the net value of the fund. When the price is higher than the net value, it is a premium, and vice versa.
For investors with weak risk tolerance, if they want to participate in graded fund investment, they can choose to hold A fund, and they can get a fixed expected return every year, similar to A perpetual securities, which has a fixed expected return and its investment risk is lower than that of B fund.
The above content about what problems should be paid attention to when investing in graded funds, I hope it will help you. Warm reminder, financial management is risky and investment needs to be cautious.