Fund A is guaranteed income, and Fund B is financed by Class A funds. B fund has the characteristics of high returns and high risks. Ordinary investors are not suitable to buy graded funds, especially the B fund of graded funds is very risky.
According to regulatory requirements, fund companies must complete the rectification of graded funds by the end of 2020. That is, by the end of 2020, graded funds will formally withdraw from the historical stage, or transform or liquidate.
At present, many hybrid funds are divided into three categories: ABC or AC. In fact, they are not graded funds. ABC only stands for different charging methods. Generally speaking, Fund A indicates that the fees charged for purchasing such funds are front-end fees, that is, fees are charged at the time of purchase; Fund B is the back-end fee, that is, it is only charged when you redeem it; Fund c charges a fixed fee according to its holding years.