The rise and fall of graded funds refers to the conversion of sub-funds into parent funds or the conversion of parent funds into sub-funds. Because there is a certain difference between the transaction prices of the parent fund and the sub-fund, the discount can help investors adjust their positions under different market conditions.
The upward discount of graded funds refers to the conversion of sub-funds into parent funds. After the conversion, the share of parent funds increases and the share of sub-funds decreases. The condition for the discount is that the net value of the sub-fund reaches a certain level. If it is not reached, the discount operation cannot be performed. The purpose of the discount is to balance the transaction price of the parent fund and the sub-fund and try to narrow the price difference between them.
The discount of graded funds refers to the conversion of parent funds into sub-funds. After the conversion, the share of sub-funds increases and the share of parent funds decreases. The condition of discount is that the net value of the parent fund falls to a certain level. If it doesn't fall to this level, it can't be discounted. The purpose of the discount is to protect the interests of investors and avoid the losses caused by the rapid decline in the net value of the parent fund.
When investors choose graded funds, they need to choose parent funds or sub-funds according to their risk tolerance and income pursuit. For investors with high risk tolerance, they can choose to invest in sub-funds in order to pursue higher returns. For investors with low risk tolerance, they can choose to invest in the parent fund to obtain more stable income.
Generally speaking, graded fund is a highly flexible investment method, and investors can choose discount operation according to market conditions and their own needs to achieve the best investment effect. However, investors need to pay attention to the fact that graded funds have certain risks and need to be carefully selected and managed.