What are the differences between Class A and Class C funds? When we buy open-end funds through over-the-counter channels, we will find that many funds have two types, A and C. Many friends who have just started investing in funds do not understand this.

So what is the difference between fund class A and class C? The following is the difference between class funds brought to you by the editor!

What is the difference between Fund Class A and Class C? The main difference between Fund Class A and Class C is the charging method.

Among them, Class A funds need to pay subscription fees, and the redemption fees decrease with the holding time, and no sales service fees are required; Class C funds do not need to pay subscription fees when subscribing, and there is generally no redemption fee when held for 7 days, but sales services are required.

fee.

Subscription fees and redemption fees are charged in one go, and sales service fees are charged based on the holding time. The longer the position is held, the higher the sales and service fees will be.

It can be seen that because there is no sales and service fee, buying Class A funds is more suitable for long-term investment; because there is no subscription fee, buying Class C funds is more suitable for short-term investment.

When selecting funds, you can often see that the same fund company has two types of funds, Class A and Class C, of ??the same type. So what is the difference between these two funds? Take the Tianhong CSI Bank Index as an example. In fact, these two funds track

The index is the same, the fund manager is the same, and the positions are the same. The only difference is the fee rate. The second brother calculated the fee rates of the two funds separately. The default buying amount is less than 5 million and the selling time is greater than 30 days. Then you can see

The handling fee for buying Class A is 0.1% + 0.05% + 0.5% + 0.1% = 0.75%. The handling fee for buying Class C is 0.5% + 0.1% + 0.25% = 0.85%. Although the buying and selling rates for Class C are both

0, but does it mean that the handling fee of Class A is lower in this way? In fact, it is not because the sales service fee is 0.25% calculated on an annual basis and charged on a daily basis. The average is 0.000685% per day. That is to say, if the holding time

If the holding time is less than 1 year, the actual sales and service fee is less than 0.25%. However, if the holding time is more than 1 year, the actual sales and service fee is more than 0.25%. If you calculate it carefully, you can calculate that when the holding time is 146

When the holding time is less than 146 days, the fee rates of the two types of funds are equal. That is to say, when the holding time is less than 146 days, the handling fee of type C is lower. When the holding time is greater than 146 days, the handling fee of type A is lower. This is only for the Celestica CSI Bank Index.

For comparison, other fund rates are different, but the calculation method is the same. You can also use the same method to compare when selecting funds. It takes half a year for the second brother to just build a position, so there is no doubt that Class A funds should be selected for this index through the table.

It can also be seen that the rate for selling within 7 days is as high as 1.5%, which is equivalent to an immediate loss of 1.5% for buying. Therefore, the second brother in the previous article emphasized that selling should be done after 7 days of holding, and 7 days should be prepared before liquidation.

I didn’t know that fixed investment would be stopped on the same day, but I was shocked when I calculated it. I immediately stopped fixed investment in category C of my bank and changed it to fixed investment in category A. After 7 days, I converted all category C to category A, and I lost a little in handling fees.

What is the difference between Fund Class A and Class C? There are four main differences between Fund Class A and Class C: First, Fund Class A has no sales service fees, while Class C has service fees.

Second, fund category A will charge a subscription fee, while fund category C will not charge a subscription fee.

Third, fund category A will charge a subscription fee, while fund category C will not charge a subscription fee.

Fourth, there will be a redemption fee for Category A funds if they are held within two years, and there will be no redemption fee for more than two years.

For Fund C, there is a redemption fee if the fund is redeemed within 30 days, and there is no redemption fee if it is redeemed after 30 days.

In this regard, we can find that if an investor intends to obtain long-term returns, that is, if he intends to hold it for more than two years, then it is best to choose a Class A fund.

If investors intend to obtain short-term gains, that is, fast in and fast out, then it is best to choose Class C funds. Class C funds can effectively reduce our handling fee losses.

Another thing to note is that Class A funds generally have less risk than Class C funds, so we can purchase them based on our personal risk level.

What are the differences between Fund Class A and Class C? The main difference between Fund Class A and Class C is the charging method.

Among them, Class A funds need to pay subscription fees, and the redemption fees decrease with the holding time, and no sales service fees are required; Class C funds do not need to pay subscription fees when subscribing, and there is generally no redemption fee when held for 7 days, but sales services are required.

fee.

Subscription fees and redemption fees are charged in one go, and sales service fees are charged based on the holding time. The longer the position is held, the higher the sales and service fees will be.

It can be seen that because there is no sales and service fee, buying Class A funds is more suitable for long-term investment; because there is no subscription fee, buying Class C funds is more suitable for short-term investment.