The assets of A share and B share are invested as a whole, in which the holders of B share pay agreed interest to the holders of A share every year. As for the overall investment after paying interest All profits and losses are borne by B's share.

Take a certain financing grading model tiered fund product , all remaining assets of Fund

When the overall net value of the Fund of Funds falls, the net value of Share B will fall first; correspondingly, when the overall net value of the Fund of Funds rises, the net value of Share B will gain faster after providing the income of Share A. value added. Share B usually obtains a certain degree of leverage by participating in the distribution of residual income or bearing losses to a greater extent. It has a more complex internal capital structure, and its nonlinear income characteristics make it implicit in options.

Structured Fund, also called "structured fund", refers to the formation of two-level (or multi-level) risk-return performance through the decomposition of fund income or net assets under an investment portfolio. Fund types with certain differentiated fund shares.

Its main feature is to divide fund products into two or more types of shares and provide different income distributions respectively. The sum of the products of the net value and share ratio of each sub-fund of a hierarchical fund is equal to the net value of the parent fund. For example, the net value of a parent fund split into two types of shares = the net value of class A sub-funds X the percentage of A shares + the net value of class B sub-funds X the percentage of B shares. If the parent fund is not split, it is an ordinary fund.