The difference between graded funds and ordinary funds is that the share of graded funds contains leverage mechanism. When the market rises, it has the opportunity to get investment income outside the index, which is an innovative variety of index funds. Ordinary funds are not leveraged, and the investment income is distributed according to the share of investors. And the graded foundation is divided into two or more types of shares and given different income distribution. General funds will not be share split.

1. The cooperation form of graded funds has advantages. Partners can have low-risk preference or high-risk preference, which can be adjusted according to their own risk tolerance and the proportion of A and B.

2. Partners can flexibly allocate assets according to their own cooperation characteristics and market trends.

3. Graded funds provide convenient, fast and low-cost fund cooperation methods for various partners.

Disadvantages of graded funds compared with ordinary funds;

1, the leverage ratio is too large, and the risk is amplified.

Some leverage can reach 2 times or even more than 5 times, and the net value of the fund fluctuates greatly and the risk is high; However, there is no entry threshold for the grading market, and a large number of partners enter the market. Once the price suddenly drops, some partners have no higher ability to cope.

2. The discount of the fund may cause losses to the partners.

Although the general fund discount has no effect on the overall net worth of partners, it may also cause value loss; In addition, if the partners fail to respond in time when the fund is discounted, there may be a risk of loss.

3. The grading fund market system is not perfect.

China's graded funds are still in the development stage. In the cooperative market, imperfect system and irregular market will be used to carry out premium, attracting partners to arbitrage, thus causing some partners to suffer heavy losses.