The purpose of grading fund discount and discount:
The discount and discount of graded funds are often to restore the leverage of graded funds, realize the expected annualized expected income and protect the rights and interests of A share holders. If there is no conversion, the leverage of graded funds will become larger or smaller. Therefore, in a certain period of time, the fund company will adjust the fund share according to a certain proportion, so that the fund net value is equal to 1 or close to 1, thus increasing or decreasing the investor's share accordingly. After the graded fund is folded up or down, the share ratio of investors holding the fund remains unchanged, which has no effect on the total assets of the holders holding the fund.
Discount process and risk points of graded funds;
Before the discount, investors who buy Grade B can get the annualized expected return of leverage that is suitable for their expected risk return, that is, when the underlying index rises sharply, Grade B will also rise sharply; The underlying index has fallen sharply, and the grade B will also fall sharply.
However, the T-day grading fund has been discounted, so the T+ 1 grading target index must have been converted whether it has risen sharply or not.
After the discount of graded funds, the overall premium rate of graded funds will fall back to about 0%, and even a small discount will occur. Therefore, after the T-day grading fund determines the discount, if the overall premium rate of T+ 1 grading is too high, investors should not touch this grading B.
Will the graded fund class A lose money?
Although graded A fund is a low-risk investment product, it may also cause losses due to premium purchase in the secondary market. It should be noted that once the discount rate between the secondary market price and the net value of the graded A fund is fixed, the graded A fund will lose the function of "put option" and the premium graded A fund will suffer losses instead.