In order to ensure the safety of the principal and expected income of the sub-fund A share of the graded fund, the sub-fund B share will be converted downwards according to a certain proportion during the continuous decline of its net value. What impact does the fund discount have on the fund?

1. the influence of fund discount on sub-fund b

In fact, the fund discount mentioned by everyone will cause a large loss of the fund, which is aimed at the B share of the sub-fund. Generally speaking, according to the contract of the fund, when the net value of the Class B share of the sub-fund falls to 0.25 yuan, it will be converted downwards according to the net value. After downward conversion, the number of Class B shares of sub-funds decreased, and the net value returned to 1 yuan. For example, the number of investors who originally held 1 1,000 funds decreased to 2,000 funds.

In the process of fund discount, the original transaction price is much higher than the net value of the fund. If it is converted downwards, the net value of the fund will be rewarded, but the investors who hold the fund will lose a lot.

2. Influence of Fund Discount on Sub-Fund A

During the discount process of sub-fund B, the number and net value of sub-fund A will be adjusted to be consistent with sub-fund B, but a large number of redemptions of fund B will occur, and the expected return of redemption will be included in the expected return of the parent fund. This part of the expected income belongs to the class A share of the sub-fund, so it is good for the class A sub-fund.

3. The influence of fund discount on the parent fund

In the process of fund discount, the net value of the parent fund remains unchanged in all aspects, with little impact.

On the whole, the discount of all funds is a great loss for leveraged Class B funds, but it is good for Class A sub-funds.