A-level funds are suitable for investors with fixed expected returns and low risk tolerance, and often have agreed expected returns; Class B funds are targeted at those investors who expect to increase their investment capital through financing, and then obtain excess expected returns, and have a higher risk expected return preference.
The difference between class b funds and class a funds.
1. From the perspective of expected income,
A-level foundation has a relatively stable and upper bound expected rate of return; The B-level fund has no clear expected rate of return target. In the simplest grading fund redemption market, after paying the expected income of A-level funds, the remaining expected income generated by product investment all belongs to B-level.
2. From the perspective of risk.
When the investment loses money, it shall be borne by the B-level fund first. If the expected return of the B-level fund is completely lost, it will be lost to the A-level. Therefore, from the perspective of risk, Grade B represents the part with higher risk, and Grade A represents the part with relatively lower risk.
To sum up, in the simplest analysis market, the risk of A-level funds is relatively small, and the expected return is relatively fixed; B-level funds are risky, but the expected returns are also high.