What many friends are most worried about in the process of financial management is the financial security of financial management. As for tiered funds, how safe is the Class A tiered fund? Let me introduce it to you today.

Graded Fund Category A

Graded funds are also called "structural funds", which refer to the formation of two levels under an investment portfolio by decomposing the fund's expected income or net assets. (or multi-level) fund types with certain differentiated fund shares in expected return performance.

Graded funds include parent funds, Class A graded funds, and Class B graded funds. Generally speaking, the investment style of grade A is more conservative, and the investment style of grade B is more aggressive. The grading is similar to a bond, and the default risk of this bond is much lower than that of exchange bonds. As long as B does not lose all money, the principal and interest of A are guaranteed.

Will Class A Class Funds Lose Money

Generally speaking, like bonds, when market interest rates rise, the price of Class A will fall; when market interest rates fall, the price of Class A will will rise. So will graded fund Category A lose money?

1. When the loss of share B has not triggered the lower discount point (the general standard is that the fund of funds continues to touch the lower limit before the fund company starts to discount, then it is possible for share A to suffer losses, but this The possibility of this situation is very small.

2. Although the possibility of a loss in the net value of Class A shares is small, because it is a perpetual bond, investors purchase it at market prices, so market prices may also fluctuate. It will cause losses to holders of A shares.

To sum up, Class A tiered funds will only lose money when Class B completely loses money. Under normal circumstances, they will receive corresponding principal and interest; but the market Risk is also an important source of risk, so investors should carefully choose investment objects to reduce the possibility of losses.

That’s all for the above content on whether Class A funds will lose money. I hope it will be helpful to everyone. Warm reminder, financial management is risky, so investment needs to be cautious.