At present, domestic fund investment channels are very rich. We can purchase fund products through bank APP, Alipay, securities account and other channels. There are many types of funds, and sometimes you will see graded leveraged funds. What does this mean?

What does graded leveraged fund mean?

Hierarchical leveraged funds refer to funds that have different shares within the fund and use leverage to expand profits and losses. We can understand this kind of fund from two aspects: classification and leverage:

1 classification: that is, different fund shares have different returns. There are at least two sub-funds in the graded leveraged fund. Sub-fund A is a fixed-income fund and Sub-fund B has no fixed income.

2 leverage: that is, the sub-fund B borrows money from A by paying interest to A, which is the source of A's income.

For example, if the parent fund is split to raise a total of 65,438+000 yuan, the sub-funds A and B will be divided into 50 yuan. A lends all the money to B, and B changes from 50 to 100, so the leverage ratio is twice.