1, the risk depends on the specific fluctuation. Due to the recent fluctuations in the A-share market, as of August 18, the reference net value of the shares of several funds is close to the conditions for irregular share conversion stipulated in the fund contracts. In order to remind investors of risks, Shenzhen Stock Exchange announced yesterday that six graded funds under five fund companies were issued to remind investors of possible irregular switching risks, and to remind investors to pay close attention to the trend of graded funds and be alert to the risk of "downward discount" of graded funds.

2. The reason for the irregular conversion of graded funds is that when the net value of funds rises or falls sharply, the leverage of B share of graded funds (hereinafter referred to as "B share") will also decrease or increase. When the net value of the basic share (usually called "parent fund") reaches 1.5 yuan, the net leverage of share B is about 1.5 times. In order to prevent the increase in the net value of basic shares from further reducing the leverage level of B shares, the contract terms of graded funds usually clearly stipulate the conditions for irregular upward conversion.