First of all, their charging modes are different. Class A funds need to pay subscription fees and redemption fees at the time of subscription, while Class C funds do not charge subscription fees, but they will charge sales service fees and redemption fees (Class C funds are exempt from redemption fees after holding the fund for 7 days).
Secondly, they are suitable for different people. Class A funds are suitable for long-term investors to buy, because the related expenses are deducted at the time of subscription. Fund C is suitable for short-term investors to buy, because it needs to charge daily sales service fees, which is suitable for investors who buy and sell frequently.
Finally, their net assets are also different. The sales service fee of Class C funds is accrued by each investor separately, and the sales service fee is deducted from the fund assets every day, so the net value of Class C funds will be lower than that of Class A funds.
Is it better to buy a or c for a fixed investment fund?
It is better to invest in A and A shares, including subscription fee and redemption fee. The longer the holding time, the smaller the redemption fee, or even the redemption fee is zero. There is no subscription fee for Class C shares, but there is a sales service fee and a redemption fee, which decreases with the increase of holding time. The sales service fee of Class C is accrued daily and deducted directly from the fund assets, which is reflected in the daily net value. From the cost point of view, if investors do short-term investment, it is better to buy C, and the cost is lower. On the contrary, it is better to invest in A for a long time, so it is better to invest in A. ..
In addition, for investors who don't buy much money and hold it for more than two years, Class B is more suitable. Some bond funds only charge a one-time subscription fee of 0.6%, and the redemption fee for more than two years is zero.
For fixed investment, it is more appropriate to buy the class A share of the fund. Class A shares include subscription fee and redemption fee, but with the increase of holding time, the redemption fee gradually decreases, even to zero. There is no subscription fee for Class C shares, but there are sales service fees and redemption fees. The sales service fee is accrued daily and deducted directly from the fund assets, which is reflected in the daily net value. From the cost point of view, if investors make short-term investments, the cost of purchasing Class C shares is lower; On the other hand, if you make a long-term investment, it is more appropriate to buy A shares. In addition, for investors who don't buy much money and hold it for more than two years, class B share is also a suitable choice. Some bond funds only charge a one-time subscription fee of 0.6%, and the redemption fee for more than two years is zero. To sum up, for the fixed investment, it is more appropriate to buy the class A share of the fund.