What is a graded fund? Hierarchical fund is a special open-end fund, and its basic idea is to realize the leverage effect of portfolio by issuing common stock and preferred stock based on leverage. The investment portfolio of common stock is the same as the net value of the fund, while the investment portfolio of preferred stock is based on the value of common stock, plus certain leverage.
The operation mode of graded fund is that the fund company issues common stock first and then preferred stock, and the investment portfolio of common stock and preferred stock is based on the same investment portfolio. The investment portfolio of common stock is the same as the net value of the fund, while the investment portfolio of preferred stock is based on the value of common stock, plus certain leverage. The portfolio of common stock is affected by the fluctuation of fund net value, and the portfolio of preferred stock is affected by the fluctuation and leverage of common stock portfolio.
Advantages and disadvantages of graded funds The advantage of graded funds is that they can provide higher returns because of the use of leverage. Graded funds are usually more flexible than ordinary funds because they can invest in different types of securities, including bonds, stocks and commodities. The disadvantage is that the leverage effect may also bring greater risks, because if the market fluctuates, leverage may amplify losses. The transaction cost of graded funds is also higher than that of ordinary funds, because two kinds of stocks need to be issued and traded.
Regulatory restrictions on graded funds 20 15 The China Securities Regulatory Commission issued the Notice on Regulating the Business of Graded Funds, which restricted the operation mode of graded funds. Among them, the most important thing is that the common stock and preferred stock of graded funds must be listed on the same exchange and suspended on the same trading day. The leverage ratio of graded funds is also limited to 1.5 times.
? Although the regulatory restrictions on graded funds are getting stricter and stricter, graded funds still exist. Wind data shows that as of June 20021year, there are still 12 graded funds in the A-share market, with a total scale of about 24 billion yuan. There are also some graded funds in Hongkong, but the scale and quantity are smaller than those in Chinese mainland. Graded fund is still an existing financial product, but investors need to pay attention to its risks and benefits and abide by the regulatory provisions.