The hierarchical leverage of funds is a complex investment strategy, which improves the return on investment by providing investors with different levels of fund shares and using borrowed funds. The most common types of fund hierarchy are Class A and Class B stocks, that is, adding "A" or "B" after the fund code indicates different levels of fund shares. Class B stocks usually adopt leveraged investment strategy, that is, fund managers borrow money from banks and other institutions to increase the income of Class B stocks, but it also increases the risk of Class B stocks.

How should investors view the hierarchical leverage of funds?

Investors should choose appropriate funds according to their risk tolerance and investment objectives. Compared with traditional investment strategies such as stocks, bonds and funds, the graded leveraged investment strategy of funds is more risky, but it can also get higher returns accordingly. Investors need to clearly understand the working principle, risks, benefits and applicable investment time of fund grading leverage to avoid unnecessary investment losses.

What is the impact of fund grading leverage on the market?

There is leverage risk in the graded leverage strategy investment of the Fund. Once the leverage strategy fails, it will lead to large fluctuations in the market. Excessive reliance on leveraged investment strategy may lead to excessive market prosperity, and once the strategy fails, it will lead to market collapse. Therefore, the market supervision department needs to actively regulate the fund grading leverage to ensure the healthy development of the market.