Hello, the so-called graded fund refers to a structured securities investment fund that divides the share of the parent fund into sub-shares with different risk and return through pre-agreed risk and return distribution, and can be listed in part or in whole.

Among them, the basic share of graded funds is also called the parent fund share, the sub-share with lower expected risk return is called the stable share (also called "Class A share"), and the sub-share with higher expected risk return is called the positive share (also called "Class B share").

II. Operating principles of graded funds:

Steady share lends assets to positive share and obtains stable annual benchmark income every day, so its net share value will increase day by day; Active share combines self-owned assets with lent assets (that is, basic share assets) and invests in an investment target. No matter whether it gains income or not, it pays the borrowing cost steadily every day, and its net share changes in the same direction as the parent share.

3. What are the operating forms of graded funds?

There are two forms of graded funds: closed-end graded funds are closed regularly, and sub-shares are listed and traded on the exchange, and subscription and redemption are not open; The parent share of the open-ended graded fund is purchased and redeemed, and the child share is listed on the exchange. Investors can realize the conversion between parent share and child share through splitting and merging.