Graded funds are divided into parent funds and sub-funds. Sub-funds have two kinds of shares. One kind of share is low-risk share, which is called stable share or class A score. The name of the fund is XX Grade A .. This share is similar to the fixed income products, and the fixed income is obtained at the agreed interest rate, and the high-risk share is given priority, with less risk;

The other kind of share is high-risk share, which is called aggressive share or class B share, and the fund name is XX Grade B. This kind of share gets the residual income after being paid to the stable share.

Some graded funds have three shares to invest in, namely, parent fund, share A and share B, while others have only two shares, namely, two sub-funds AB.

The sub-fund classification and risk-return arrangement of classified funds are very similar to those of shareholders and creditors of enterprises. The holder of enterprising shares is equivalent to the shareholders of the company, the holder of prudent shares is equivalent to the creditor, the holder of prudent shares is equivalent to lending funds to the holder of enterprising shares to obtain fixed income, and the holder of enterprising shares is equivalent to obtaining financial leverage from the holder of prudent shares.

The ratio of the steady part to the enterprising part is 1: 1 or 4:6. In fact, graded funds are funds that use structured grading technology. Through the decomposition of fund income or net assets, a fund variety with two-level (or multi-level) risk-return performance and a certain differentiated fund share is formed. For example, E Fund's small and medium-sized board index grading fund is divided into three types of shares, in which the fund share ratio of small and medium-sized board A and small and medium-sized board B remains unchanged during the grading operation period, both of which are listed and traded and can be converted in pairs.