1. Short-term holding: For short-term traders, Class C funds are usually more suitable for holding within one year. This is because Class C funds do not charge subscription fees, but charge annualized sales service fees, usually around 0.25%. Class C funds are usually held for more than 30 days without redemption fee.
2. Long-term holding: For long-term investors, if they hold for more than one year, it may be more appropriate to buy Class A products at a 10% discount on the subscription fee, because Class A products do not charge sales service fees, while the sales service fees of Class C funds are accrued daily.
3. Redemption fee: When a Class C fund is redeemed within 30 days of its holding period, it usually needs to pay a redemption fee, which will be fully included in the fund property. If the share holder redeems after the holding period exceeds 30 days, no redemption fee will be charged.
4. To sum up, it is more cost-effective for Class C funds to be redeemed after the holding period exceeds 30 days, because there is no redemption fee at this time. However, if investors intend to trade in the short term, the lower redemption fee and subscription-free fee of Class C funds may be more attractive. Investors should choose the appropriate fund type according to their investment strategy and holding period.