What's the difference between Class A funds and Class C funds?
For the same fund, Class A shares have subscription fees and redemption fees. The longer the holding time, the smaller the redemption fee, and the lowest can be 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.
Take the bonus fund as an example. Both Class A and Class C of incentive funds are fund types. Both have independent fund codes, and the net value is calculated separately. The only difference is the charge. So, do investors buy Class A funds or Class C funds?
Buy a or c?
Class C funds are designed for users who like short-term investments. So, let's draw a conclusion first. You can buy class C funds for short-term investment and class A funds for long-term investment. To what extent do you buy Class C in the short term and Class A in the long term? The following small series uses an example to illustrate.
Taking bonus funds as an example, assuming that the subscription amount is less than 654.38+0 million, the transaction costs of the two types of funds (excluding custody fees and management fees) are as follows:
Class A fund subscription fee 1% (no discount), no sales service fee; Hold it for 7 days to 1 year, and the redemption fee is 0.5% to 0.25%; If it is held for more than one year, the redemption fee will be exempted. Class C funds do not charge subscription fees, and the annual sales service fee is 0.4%. If they are held for 7 days to 30 days, they will be redeemed by 0.5%, and the redemption fee will be exempted for more than 30 days. Holding time is less than 1 year, class A income is 1%, and class C income is 0.4%; If it is held for more than 65,438+0 years, Class A will still get 65,438+0%, while Class C will spend more than Class A if it is held for more than 2.5 years.
In addition, the sales service fee of Class C is a daily collection, which is directly deducted from the fund assets and reflected in the daily net value, so the net value of Class C funds is often lower than that of Class A funds. Ok, the introduction of class A and class C funds is enough. I hope it helps you.