What does graded B fund mean? Why did the graded B fund break out? I believe that many people still lack a certain understanding of the knowledge of the fund, so Bian Xiao specially sorted out what the explosion of the graded B fund means to everyone, hoping to help everyone.

What does the explosion of graded B fund mean?

Graded B fund is a special type of open-end fund, and its investment strategy is to amplify investment income through borrowing leverage. This kind of fund usually consists of two layers: the upper layer is Class A share and the lower layer is Class B share. Class A shares are usually relatively low-risk and stable, while Class B shares make high-risk investments by borrowing leverage to pursue higher returns.

The operating mode of graded B fund is that investors can buy Class A or Class B shares. The value of Class A shares is relatively stable, and its income mainly comes from the normal investment performance of the fund portfolio. B shares, on the other hand, have higher risk and return potential, but they also bear greater fluctuation risk and loss possibility.

It should be noted that the investment risk of graded B fund is relatively high, and investors need to carefully consider their own risk tolerance when purchasing, and fully understand the operating mechanism and investment strategy of the fund. At the same time, before investing in graded B funds, it is recommended to consult professional financial consultants or institutions to obtain comprehensive risk assessment and investment advice.

What does graded B fund mean?

Graded b fund is a kind of graded fund share type that uses leveraged investment. Leveraged fund is a kind of hedge fund, and domestic leveraged fund belongs to the leverage share (also called aggressive share) of graded fund. Graded funds are generally divided into A, B, A, and B share assets as a whole, in which B share holders pay the agreed interest to A share holders every year, and the overall investment profit and loss after paying the interest shall be borne by B share.

Graded funds are generally divided into A, B, A, and B share assets as a whole, in which B share holders pay the agreed interest to A share holders every year, and the overall investment profit and loss after paying the interest shall be borne by B share. When the overall net value of the parent fund decreases, the net value of B shares decreases first; Accordingly, when the overall net value of the parent fund rises, the net value of B shares will appreciate faster after providing A shares. B-shares usually participate in the distribution of residual income or bear losses to a great extent, and have more complicated internal capital structure and nonlinear income characteristics of implied options.

What will happen if the fund explodes?

1. For fund managers, the exposure of private equity funds may damage their reputation, dampen investor confidence, and may be held accountable by the regulatory authorities.

2. For investors, the risk exposure of private equity funds will directly lead to the loss of their investment principal, and even face the risk of total loss in extreme cases.

3. For the whole market, the exposure of private equity funds may lead to negative effects such as tight market liquidity and stock price plunging, and even lead to systemic risks.

The meaning of fund

In a narrow sense, the fund refers to the securities investment fund, which is a kind of collective securities investment mode, with * * * income and * * * risk. That is, by issuing fund units to issue fund shares, many investors' funds are pooled to form independent assets, which are managed by fund custodians (general banks) and operated by fund managers (fund management companies) to obtain investment returns and capital appreciation. Domestic funds all take stocks, bonds and other securities as investment targets, so the full name of the fund is "securities investment fund".

Classification of allocated funds

Actively allocate funds

Allocation fund

Funds that invest in stocks, bonds, money market instruments, commodities, and alternative investments (such as unlisted equity and non-standardized creditor's rights). ) and does not meet the classification criteria for investing in stock funds, bond funds, equity investment funds or other single financial products; And the ratio of fixed income assets to net asset value.

Conservative allocation fund

Funds that invest in stocks, bonds, money market instruments, commodities, and alternative investments (such as unlisted equity and non-standardized creditor's rights). ) and does not meet the classification criteria for investing in stock funds, bond funds, equity investment funds or other single financial products; And the proportion of fixed income assets to net asset value is ≥50%.