What is a graded fund?
A share and B share are invested as a whole, in which the holder of B share pays the agreed interest to the holder of A share every year, and the overall investment profit and loss after paying the interest shall be borne by B share. ..
Are graded funds risky?
Graded funds are divided into low-risk funds and high-risk funds. These two funds can meet the needs of investors with low risk preference and high risk preference respectively. Investors can flexibly allocate assets according to their own investment characteristics and market trends, and graded funds provide convenient, fast and low-cost fund investment methods for all kinds of investors.
As a graded fund, it is risky with different degrees of risk.
What are the risks of graded funds?
1, investment risk
Graded funds divide the basic shares into sub-shares with different characteristics of expected return on risks, but still invest the fund assets as a whole, which will lead to risks in the investment process.
2. Credit risk
Although the sub-shares with lower expected returns of graded funds have the characteristics of low risk and relatively stable expected returns, they may still face the credit risk of the issuer's default, which makes investors unable to obtain the agreed expected returns or even lose the principal.
3. Leverage risk
High leverage has two sides. When it rises, it can amplify the expected return, but once it falls, the investment loss will also be amplified.
4. Estimation error
Due to the limitation and incompleteness of valuation, the estimation of the reference net value of graded shares can not fully reflect the true value of graded shares, resulting in errors.
The above is the good content of the fixed investment of 20 19 index fund. I hope it will help everyone. Warm reminder, financial management is risky and investment needs to be cautious.