(1) graded funds divide the basic shares into sub-shares with different risk-return characteristics, but the fund assets are still invested and operated as a whole, so they also face various investment and operation risks.
(2) Although the sub-shares with lower returns of graded funds have the characteristics of low risk and relatively stable expected returns, they may still face the risk of failing to obtain the agreed returns or even suffering the loss of investment principal.
(3) High leverage has a "double-edged sword" effect, which can amplify the income when it rises, and the investment loss will be amplified simultaneously when it falls.
(4) Rationality of valuation. Using the simplified "liquidation principle" to estimate the reference net value of graded shares, regardless of the option value contained in graded shares, can not reflect the true value of graded shares.