And it has leverage. There are generally 2 -3 such funds, but they interact with each other.
Its main feature is to divide the fund products into two types of shares and give different income distribution respectively. Graded funds are usually divided into two types of shares: low-risk income side (agreed income share) sub-funds and high-risk income side (leveraged share) sub-funds.
Leveraged funds are hedge funds. Hedge funds are those that use different markets to carry out arbitrage transactions. Formally speaking, hedge funds are a set of investment tools, which are traded in various markets, including foreign exchange, stocks, bonds, commodities and various derivatives.
Extended data
Matters needing attention in purchasing leveraged funds
1. Consider the size of leverage: different graded funds have different leverage. Judging from the current mainstream classified stock base, the ratio of general priority share to enterprising share is 1: 1 or 4: 6, that is, the initial leverage is 2 times or 1.67 times.
As the net ratio of the two changes, the leverage will also change. Generally speaking, if the net value of enterprising share increases, the leverage will decrease, and if the net value of enterprising share is less, the leverage will increase.
2. Consider whether it can be converted in pairs if there is a premium: the current discount premium situation. Generally speaking, an excessive premium rate will overdraw the future income of the enterprising share, resulting in insufficient upward momentum, so we should pay attention to it when investing.
For example, Shen Wanshen is enterprising because the premium rate is too high, and the increase in the secondary market is less than the increase in the net value. The mechanism of pairing conversion can ensure that the basic share as a whole will not have too much discount premium.
Because once the price and value of the basic share deviate too much, there will be room for arbitrage, so the price will return to value. This mechanism has also caused the seesaw effect of priority share and enterprising share, and the discount rate between them has changed.
If there is no conversion mechanism, the enterprising share will often be discounted.
3. Consider the expiration time: For some products with expiration time, as time approaches, the price of aggressive share in the secondary market will gradually return to value, and the discount premium will disappear. For products with no expiration time, after each conversion time point, the leverage will be slightly reduced due to the dividend of the priority share.
Baidu Encyclopedia-Leveraged Fund