1. A graded fund refers to a structured securities investment fund that prearranged the risk-return distribution of fund shares, divided the parent fund shares into two types of sub-shares with different expected risk-return and listed some or all of them. Among them, the basic share of graded funds is also called "parent fund share", the sub-share with lower expected risk and return is called "A share" or "Steady share", and the sub-share with higher expected risk and return is called "B share" or "enterprising share".

2. At the time of issuance, the parent fund of the graded fund can be raised off-site or on-site. After the establishment of the fund, the fund shares subscribed by investors through the market will be automatically split into A shares and B shares. The ratio of share A to share B of stock grading funds is generally 1: 1. Most denominator funds are index funds that passively track a specific index. Whether it is the basic share, the A share and the B share, the assets of the three types of shares are combined.