Grade A: Get a fixed agreed income every year, and its income is reflected in the daily net value of the fund.
So Class A is a low-risk stock.
Grade B: After paying the income to Grade A, enjoy the rising income of the fund alone or bear the risk of the fund falling alone.
Therefore, Grade B is a high risk and high return.
The graded fund is a kind of structural fund, which can be understood as that the holders of B shares borrow money from the holders of A shares to make stocks. Since it is borrowing money, the holder of share B will pay the agreed interest to the holder of share A every year.
When the stock market is good, the trend of Grade B is self-evident and absolutely excellent.
But the problem is that the stock market is like all the year round. There are summer (bull market) and winter (bear market). It cannot be a bull market forever. If the stock market does not go up or down in three to five years, then grade B? The trend must be terrible.
At the same time, even if the performance is not good, the holders of B shares still need to pay the agreed interest to the holders of A shares.
For the parent fund of the graded fund, if there are other similar products, it is best not to invest in the parent fund of the graded fund.
Because in general, the parent fund rate of graded funds is relatively high, and from the historical performance, the effect of tracking indexes is not very good (most graded funds are index funds at present).
Therefore, unless you are playing short-term, it is best not to choose graded funds for fixed investment.
3. What's the difference between graded funds and equity funds?
1, graded fund (structured? Fund), also known as "structured fund", refers to a fund variety that forms two-level (or multi-level) risk-return performance and a certain differentiated fund share through the decomposition of fund income or net assets under a portfolio.
Its main feature is to divide the fund products into two or more types of shares and give different income distribution respectively.
The sum of the products of the net value of each sub-fund of the graded fund and the share ratio is equal to the net value of the parent fund.
For example, the net value of the parent fund split into two types of shares = the net value of the A-type sub-base? x？ A shares account for%? +? Net value of Class B subunits? x？ B shares account for%.
If the parent fund is not split, it is a general fund.
2. Equity funds, also known as equity funds, refer to funds that invest in the stock market.
Stock funds can be divided into various industrial funds according to the target industries.
Equity fund is the most important fund type, which takes stock as the investment target, including preferred stock and common stock.
The main function of stock funds is to pool small amounts of money from mass investors and invest in different stock portfolios.
The so-called stock fund refers to a fund that invests more than 60% of its assets in stocks.
In addition to stock funds, there are also bond funds and money market funds in China.
Bond funds refer to funds in which more than 80% of the fund assets are invested in bonds. In China, the main investment targets are government bonds, financial bonds and corporate bonds.
Money market funds refer to funds that only invest in money market instruments.
The assets of the Fund are mainly invested in short-term monetary instruments, such as treasury bills, commercial paper, bank time deposit certificates, government short-term bonds, corporate bonds, interbank deposits and other short-term securities.
The yields of these three funds are: stock funds, bond funds and money market funds.
However, from the perspective of risk coefficient, equity funds are much higher than the other two funds.