The "grading" of graded funds is mainly reflected in the setting of grading A and grading B, and its basic operating mechanism is:
A-level gains relatively fixed income;
Grade B is a leveraged operation, so when the stock market rises, Grade B will rise much more than the parent fund, and it will fall even more when it falls.
In 20 18, the Guiding Opinions on Regulating the Asset Management Business of Financial Institutions (referred to as the "New Regulations on Asset Management") required that "public offerings and open private placement products should not be graded", and graded stock funds should cancel the graded operation and complete the standardized rectification before the end of 2020. However, in July 2020, the regulatory authorities announced the extension of the transition period of the new asset management regulations, and the graded funds missed the policy dividend and still need to complete the rectification before the end of 2020.
Before 65438+February 3, 20201,there are two ways to withdraw from graded funds: one is to transform LOF funds, index funds and ETF linked funds. The second is liquidation.
For specific rectification methods, please refer to the announcement of the fund manager on specific products.
capital settlement
Some smaller graded funds directly choose liquidation, that is, the fund holders will sell their shares back to the fund managers according to the net fund value, and the subsequent graded funds will no longer exist.
Capital transformation
Most graded funds will choose to transform, such as transforming into LOF funds, index funds or ordinary equity funds. After the fund transformation, there will be no hierarchical structure, and the risk-return characteristics are consistent with those of ordinary funds.
Graded funds have their own leverage, and their gradual withdrawal is also the embodiment of standardizing the market and preventing systemic risks.
In particular, investors who hold graded funds are reminded to pay attention to the transformation announcements and risk warnings issued by fund managers, understand the rectification of graded funds held, and pay attention to investment risks.