There are two types of funds: Class A and Class C. However, some investors are confused when they buy funds because they know little about Class A and Class C. So what does Class A fund mean? Is it better for the fund to buy Class A or Class C? We have prepared relevant contents for your reference.

what does class a fund mean?

class a fund refers to the class a share of the fund, that is, subscription fee and subscription fee will be charged, but no sales service fee will be charged. When redeeming the fund, it is generally charged according to the holding time.

Generally, it is divided into ~7 days, 7~365 days, 365~73 days and more than 73 days. The longer it is held, the lower the selling rate will be. Some funds that hold Class A funds for more than two years have no redemption fee, but the details depend on the fund regulations, because the regulations of each fund will be somewhat different.

judging from the charging rules of Class A funds, it is more suitable for long-term holding. If investors plan to hold the funds for two years or more when investing in funds, they can give priority to Class A funds and have advantages in handling fees.

However, when investing in a fund, there are many aspects that need to be considered. The fund rate is one aspect, mainly depending on the investment target of the fund, which determines the rise and fall of the fund, followed by the fund manager, fund scale, past income and so on.

is it better for funds to buy class a or class C?

from the above, it can be seen that Class A funds are generally suitable for long-term holding, while Class C funds refer to Class C shares. Class C shares do not charge subscription and subscription fees (holding for more than 3 days), and the sales service fee is accrued, which is more suitable for short-term holding, because Class C funds can be exempted from redemption fees after holding for 3 days, and subscription and subscription fees are not charged, but Class C funds do charge sales service fees.

Whether the fund buys Class A or Class C should be considered from the investor's own point of view. If the money is needed in the short term, it can be given priority to take the examination of Class C. If the money is idle money that is not needed for a long time and you want to hold it for a long time, it can be given priority.

However, when buying a fund, you should also consider your ability to bear risks. If you are not strong in your ability to bear risks, it is not recommended to buy a high-risk fund type. If you can bear its risks, you can consider fund management, but be cautious.