Compulsory fund reduction means that the fund company will reduce your fund share, not because you redeem the reduced share, but because the graded fund has been discounted. In order to protect the interests of the holders of share A and avoid excessive leverage of share B (the CSRC stipulates that it shall not exceed 6 times); Most graded funds have designed an irregular downward conversion mechanism.

The way to deal with it is that when the enterprising net value falls to a threshold (the threshold of different products is set to 0). 2~0。 Between 3 yuan, most of them are 0. 25 yuan), triggering downward irregular conversion (hereinafter referred to as "downward conversion"). The net fund shares of A share, B share and parent fund share will all be adjusted to 1 yuan.

Funds can be divided into broad sense and narrow sense. Broadly speaking, they refer to a certain amount of funds set up for a certain purpose, such as trust and investment funds, provident funds, retirement funds and so on. In a narrow sense, they refer to funds with specific purposes and uses. Usually, funds mainly refer to securities investment funds.

The income of securities investment funds comes from the future, and the performance of the income is inseparable from the performance of the investment target market, which has certain risks.

classify

According to different standards, securities investment funds can be divided into different types:

(1) According to whether the fund unit can be increased or redeemed, it can be divided into open-end funds and closed-end funds. Open-end funds are not traded on the market (as the case may be), but are purchased and redeemed by banks, brokers and fund companies, and the fund scale is not fixed; Closed-end funds have a fixed duration and are generally listed and traded on the stock exchange. Investors buy and sell fund shares through the secondary market.

(2) According to different organizational forms, it can be divided into corporate funds and contractual funds. A fund is established by issuing fund shares to establish an investment fund company, which is usually called a corporate fund; The establishment of fund managers, fund custodians and investors through fund contracts is usually called contractual funds. China's securities investment funds are all contractual funds.

(3) According to different investment risks and returns, it can be divided into growth funds, income funds and balanced funds.

(4) According to different investment objects, it can be divided into stock funds, bond funds, money market funds and futures funds.