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Hierarchical bond funds are also called structural bond funds, that is, under an investment portfolio, the net assets or historical annualized returns of bond funds are split into two or multi-level risks. Funds with certain differentiated historical annualized return performance

Variety of shares.

The main feature of hierarchical bond funds is that the products are divided into two or more categories of shares, and each is given a different historical annualized income distribution.

The sum of the net value multiplied by the share ratio of each sub-fund of a hierarchical bond fund is equivalent to the net value of the parent fund.

For example, if the FOF is split into two funds, A and B, then the net value of the FOF = the net value of Fund A X the share proportion of Fund A + the net value of Fund B X the share proportion of Fund B.

If there is no split, there is actually no difference between graded bond funds and ordinary bond funds.