What are the characteristics of graded funds?
The characteristic of graded funds is to form two-level (or multi-level) fund shares with different risk-return performance through the decomposition of fund income or net assets. There are two main grading modes, as follows:
1 financing classification mode: A share and B share assets are invested as a whole, in which B share holders pay agreed interest to A share holders every year, lend A share funds and expand investment leverage.
2 Long-short classification mode: Long-short classification divides fund shares into bullish and bearish, which can be understood as investors betting on a fund.
The above are the characteristics of graded funds, and I hope it will help everyone.