Graded funds are also called "leveraged funds" ” In the investment field, leverage means borrowing money to invest, so your investment will have a magnifying effect.
For example, you originally had one hundred Yuan, you borrowed it again one hundred Yuan. If your investment income is 10% , you could have obtained ten Yuan, but now more one hundred You can earn the principal of RMB twenty Yuan. But what you really get is not twenty Because there is no charity in the capital market, you have to pay interest for borrowing money. The lower the interest, the more cost-effective your financing will be. If you borrow money at an interest rate of 7% , then you only earn thirteen Yuan. On the other hand, if you invest in a loss 10% , plus what to pay 7% Interest, you will lose money twenty-seven Yuan.
Although leverage has the temperament of both prosperity and loss, it meets the greedy nature of human beings in the financial market and has always been popular. Especially in the bull market, adding leverage is like adding full power to a banknote printing machine, but when disaster comes, it is too cruel, so remember that leverage is a double-edged sword at any time.
Overseas market eighty Leveraged funds emerged in the s, of which the leveraged closed-end funds in the United States and Britain are the most representative. Today's US leveraged ETF There are also many funds, including double forward leverage, double forward leverage and double reverse leverage. Double the positive leverage is what you bought ETF If it doubles, you can get twice the return. If it is double the positive leverage, you can get four times the return.
However, in consideration of risk management and control, China has never allowed the issuance of such leveraged and more stimulating ETF Fund, but from two thousand and seven After 2006, China's fund companies developed a leverage fund with Chinese characteristics, which is classified fund.
Hierarchical fund is a leverage fund with Chinese characteristics two thousand and seven It was called "UBS UBS Credit Rating Fund" launched in. It is a closed-end active stock fund. After several years of exploration, Yinhua later learned one hundred Index graded fund and its two sub funds, Yinhua Wenjin and Yinhua Ruijin, have become the most popular graded fund model among investors in the market, and this model has also become the established standard rules of popular graded funds.
So how does the graded fund play? As the name suggests, it is to split an ordinary fund into two sub funds with different risk levels. One is for aggressive investors, and the other is for conservative investors. Different investors can get what they need and enjoy it.
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