There are many types of funds, and many investors may see the market of graded funds when they understand the market of funds. As investors, we'd better have a clear understanding of the differences between different funds, so what's the difference between graded funds and ordinary funds?

What's the difference between graded funds and ordinary funds?

1 graded funds are divided into different shares, and the risks of different shares are quite different; Although the general fund will be divided into different shares, the risks between different shares are basically the same based on the charging method.

2 graded funds have leverage, but ordinary funds don't. The graded fund is divided into graded A and graded B, in which the B share uses the A share to expand the leverage. If there is a loss, B's funds will lose money first. If the market is unfavorable and threatens the safety of A, the graded fund will be discounted.

3. Graded funds have a higher threshold for opening accounts. Before opening the graded fund, investors should meet the requirement that the average daily securities assets under their names should not be less than 300,000 in the last 20 trading days.

In short, graded funds are high-risk funds. If investors want to invest in graded funds, they need to fully understand their risks.