I. Graded funds
As we all know, graded funds, also known as "structured funds", refer to the types of funds that decompose expected returns or net assets into two levels (or multiple levels) of risks and have certain differentiated fund shares. Its main feature is that based on the principle that the sum of the product of the net value of each sub-fund and the share ratio of the graded fund is equal to the net value of the parent fund, the fund products are divided into two or more types of shares, and different expected income distributions are given respectively.
Second, the grading fund opening conditions
1) The average daily securities assets in the name for 20 trading days shall not be less than 300,000;
2) Through the comprehensive evaluation of relevant institutions;
3) Sign the risk disclosure statement of graded fund investment;
4) Individual or general institutional investors apply for sub-share subscription and base share split of open graded funds.
Third, the grading fund investment skills
Generally speaking, the risk of preferred stock is lower than that of common stock. The more priority shares, the more stable the fund is, and those who subscribe for priority shares will prefer stable expected returns and lower risks. They are typical risk-averse. However, for some fund investors, they prefer to invest in common stock, because common stock can borrow more money and get higher expected returns. However, with the increase of the proportion of common stock, the leverage ratio of funds will increase, leading to an increase in its risk. This kind of investment fund is more suitable for investors with high risk tolerance.
The above related contents about graded funds are here, hoping to help everyone. Warm reminder, financial management is risky and investment needs to be cautious.