Financial grading funds are generally divided into two sub-funds, A and B. Among them, fund A gets fixed income and fund B gets floating income, which has certain leverage, and its leverage comes from fund A. So many investors who invest in grading A can't help but ask, does grading A foundation lose money?

Does grading mean that the foundation loses money?

It is difficult for graded A funds to lose money. Many investors are mainly worried that the sharp drop in the net value of Grade B will affect the principal of Grade A, but in fact, graded funds have discount clauses. After folding down, the lever of grade B will return to normal. Under normal leverage, when the market is unfavorable, the loss of Grade B will hardly affect the principal of Grade A..

So what is the discount of graded funds? Discount occurs when the net unit value of graded fund B is below a certain level. At present, the discount threshold of most graded funds is set at 0.25 yuan.

At the time of discount, the price of Grade B is adjusted from less than 0.25 yuan (assuming 0.25 yuan) to 1 yuan, and its share is converted into a quarter of the original, and Grade A is also converted into a quarter of the original of Grade B, and the other three quarters are converted into parent funds and distributed to investors' accounts in the form of dividends.