Leveraged funds, that is, the B share of graded funds, can obtain several times the expected annualized expected return of the parent fund according to its leverage multiple. Therefore, when the market rises rapidly in the short term, its net value will also rise rapidly. Affected by market sentiment, the B share of graded funds is often sought after by investors, which leads to a greater price increase and a greatly improved premium rate. Once the underlying index stagnates, falls, or the rising expectation weakens, the premium level will often be quickly adjusted back.

2. Arbitrage capital pressure.

Graded funds have a unique matching and conversion mechanism. When the overall premium level of graded funds is high, investors can buy the parent fund, split the parent fund into A and B sub-fund shares, and then sell them in the secondary market for profit. It usually takes three trading days to complete this process, and the existence of time lag will make investors who join later encounter the situation that the index has not fallen and the leveraged funds they hold continue to be under pressure.

3. Liquidity risk.

The transactions of graded funds are generally very light, and most of the transactions in the market are concentrated in Yin Hua Ruijin, Guo Fu Growth Enterprise Market B and other varieties, which makes it difficult for investors chasing the B share of graded funds to sell because of liquidity reasons, and then suffer losses.

Industry insiders also reminded that with the gradual arrival and selling of arbitrage funds, leveraged funds with high short-term premiums are facing callback pressure, and investors need to avoid the adjustment risks of leveraged funds with high premiums. Ordinary investors can also apply for a parent fund if they want to arbitrage. However, since this time takes four days, once the leveraged fund is substantially adjusted within these four days, investors may not be able to arbitrage. I suggest you participate cautiously.

How to grasp leveraged funds? There are four main factors to grasp here:

1, grasp the investment type. Leveraged debt base includes partial debt products and pure debt products that participate in stock market investment. Partial debt products are greatly influenced by the stock market and have great volatility, while pure debt products are only influenced by the bond market.

2. Grasp the lever size. Because the net value of graded debt base fluctuates little, the leverage ratio of leveraged debt base is highly correlated with the initial leverage ratio. The initial leverage ratio of leveraged debt base is between 3 times and 5 times, and the initial leverage ratio of Dolly Enterprising, Yuxiang B and Zengli B is 5 times. It should be noted that due to the regular redemption of Class A shares of semi-open graded debt base, Class A shares may change, which will further affect the leverage of leveraged debt base.

3. Grasp the discount premium rate. When the discount rate is high, it provides investors with a higher safety mat. On the contrary, when the insurance rate is high, the risk is relatively high. Due to different designs, investors should also refer to factors such as time limit, fund management level and liquidity when looking at the discount rate.

4. Grasp the financing cost. The so-called financing cost refers to the agreed expected annualized expected return that the leveraged debt base pays the Class A share every year. This factor may not be very important for investors who operate in the band in the short term, because the financing cost of leveraged debt base has been reflected in the secondary market price, but for long-term investors or investors who subscribe during the issuance period, the financing cost needs to be considered emphatically.