Discount is an indefinite discount. According to the design of the graded fund, when the net value of the parent fund of the graded fund rises to a certain net value (for example, 1.5), the graded fund will be discounted. The discount is caused by the sharp rise of the index corresponding to the parent fund. At this time, the share of B rises and the leverage decreases. After the discount, the net value of AB shares returns to 1, and the part exceeding 1 is distributed to AB share holders in the form of parent funds. There are many ups and downs in the bull market.

Generally, the trigger condition of discount is the unit net value of the parent fund. In the bull market, when the net value of the parent fund increases, the net value of the B share also increases synchronously, and the ratio of its asset scale to the asset scale of the A share will become larger and larger, and the leverage will become smaller and smaller until it approaches 1 indefinitely, even being ignored. This will obviously lose the charm of B share, and through conversion, each net value will be reunified, and the leverage will be heavier than that of a newly listed graded fund.

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Upward folding, that is, upward conversion, is a form of irregular conversion. When the net value of the parent fund of the graded fund rises to a certain price, the graded fund will be discounted. Because the index corresponding to the parent group rose sharply, the leverage decreased after the B share rose sharply.

After conversion, the net value of share A and share B will return to the initial net value 1, and the part exceeding 1 will be distributed to the holders of share A and share B in the form of parent share.

Fixed discount is to convert the agreed income of share A into the parent base after each interest period, and investors can realize the income by redeeming the parent base. Most of them occur at the end and beginning of each year, usually on the first working day of each year; Or the open day after the fund completes 1 operation cycle.

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