This is because the handling fee of Class A funds will decrease with the increase of time, which is also the advantage of holding Class A funds for a long time. Class C funds have a rate advantage over Class A funds in the short term, but the rate of Class A funds will disappear after a long time, and Class C funds need to be charged on a daily basis, so Class C funds are suitable for short-term holding, generally within one year, while Class A funds are suitable for long-term holding. When we choose index funds A and C, we should first consider whether they will be held for a long time. Generally, you should consider Class A funds if you hold them for more than 2 years, and Class C is the best choice if you hold them for less than 2 years.

I. Differences between Class A funds and Class C funds

1 class. A fund needs to buy all the funds at one time.

When the fees are paid, the relevant fees are charged in the early stage of investment. Class c funds do not charge subscription fees, while class c funds need to charge fund sales fees and fund service fees;

2. Class A funds are suitable for long-term fund investors with a large investment amount and a time of more than years, while Class C funds are suitable for investors with a small investment amount and a fund holding time of less than one year or investors with uncertain investment time.

Second, when investors buy funds, they need to bear certain transaction costs, because the returns of funds themselves are not high, especially bond funds, so the transaction costs have a greater impact on the returns of funds. The same fund product will be divided into Class A and Class C according to different charging rules.

Three. Index funds A and C operate together, but the rate structure is different. Class C shares do not charge subscription fees, and generally do not charge redemption fees if they are held for more than 7 days. The annual fee is 0.4%/ year more than the Class A share, and shall be accrued on a daily basis. Generally, index funds are bought on the third-party financial platform, and the subscription fee is generally 1%, so short-term investment will buy Class C and long-term investment will buy Class A..