Hierarchical parent fund, also known as "structural fund", is a kind of fund that decomposes the fund income or net assets under a portfolio to form two-level (or multi-level) risk-return performance and a certain differentiated fund share. The main feature of the graded parent fund is to divide the fund products into two or more types of shares and give different income distribution respectively. The sum of the products of the net value of each sub-fund of the graded parent fund and the share ratio is equal to the net value of the parent fund.

Graded funds first have parent funds, similar to ordinary funds. Through the decomposition of fund income or net assets, investors can buy sub-funds directly from the market. But if the parent fund is not split, the parent fund itself is an ordinary fund.