Graded fund is a special kind of fund, which is characterized by dividing the fund into different shares, and the performance of different shares is different, and some shares can obtain leverage income. So where is the leverage of the graded fund?

Where is the leverage of graded funds?

Financial management grading is a grading method of graded funds, which divides funds into A shares and B shares, in which B share holders pay agreed interest to A share holders every year, and lend A share funds to expand investment leverage, which shows its leverage. Therefore, in a leveraged graded fund, A generally gets a fixed income and B gets a floating income, so the risk is relatively high.

In addition to financing grading, graded funds also have a long-short grading model. Long-short classification divides fund shares into bullish and bearish. The parent funds of long-short graded funds include index funds and monetary funds.