Graded funds achieve income distribution through a conversion mechanism. The conversion of graded funds includes regular conversion and irregular conversion.

Periodic conversion is to pay the agreed income of share A (that is, the part greater than 1 yuan) to investors in the form of a parent fund after the end of each interest calculation cycle, ensuring the payment of interest on a regular basis. The conversion is equivalent to paying interest.

Irregular conversion is divided into downward irregular conversion and upward irregular conversion.

When the net value of B's ??share falls to a certain threshold (usually 0.25 yuan), in order to prevent the net value of B's ??share from continuing to fall to 0, thereby threatening the security of the principal and interest of A's share, a downward trend occurs at this time. Regular conversion will return most of the principal of share A so that share A will not suffer loss of principal and interest.

When the net value of the fund of funds rises to a certain threshold (usually 1.5 yuan or 2 yuan), in order to realize the income of the B share, the part of the net value of the B share that is greater than 1 yuan will be returned in the form of the fund of funds. Investors realize the income distribution of B share.