"ABC" of bond funds
The earliest letter variety in the fund name is bond fund, and its ABC meaning represents a certain charging method.
Class a funds represent the front-end charging method, that is, only the subscription fee is charged, and there is no charge for the redemption link;
Class B represents the back-end charging method, that is, there is no charge at the time of subscription, and different rates are charged at the time of redemption according to the holding time. Of course, the longer the holding time, the lower the rate, generally no charge for more than 3 years;
C stands for management fee charging mode, that is, a certain percentage of management fee is withdrawn on a daily basis, and no fee is charged during the redemption process.
"AB" of the Monetary Fund
Among low-risk funds, money market funds also have differences in AB share, and the difference lies in the different participation thresholds:
Generally, the threshold for class A participation is low, and you can buy it at 1000 yuan or even 100 yuan;
The threshold of Class B is generally at least 500,000, and the higher one is 5 million. The sales rate of Class B share is low, and of course the expected annualized expected income is relatively high.
"AB" of graded funds
The risk expectation and annualized expected return of different shares of listed funds are basically the same, but the rates are different, but the AB shares of graded funds are essentially different. Graded funds, also known as structured funds, all assets of such funds are divided into two parts, with different risks and different expected annualized expected returns:
One is called share, or priority share, steady share and low risk share;
The other is called B shares, which have also become inferior stocks, enterprising stocks and high-risk stocks.
Two shares of funds are jointly operated and managed by the same fund manager or team, but investors with different risk preferences can choose one share to invest, get different expected annualized expected returns and bear corresponding risks: Share A gets fixed expected annualized expected returns, similar to bonds. Its expected annualized expected return comes from the fund's profit, and if the fund loses money, it is extracted from the net value of B share; After paying the fixed expected annualized expected return of share A, all the remaining profits of the fund will be owned by share B. Of course, if the fund loses money, share B will bear all the losses. If classified funds are compared to joint-stock enterprises, A shares are relative to creditors, and B shares are equivalent to corporate shareholders. The essence of the relationship between the two shares is that share B raises funds from share A and obtains capital leverage by paying fixed expected annualized expected income to share A. ..
other
The letters in the above-mentioned funds are the three most common and representative meanings, but they also have some special uses. For example, some money funds have the letter e, indicating that such shares are only sold through the Internet platform, such as Huaxia Cash Increase E;
After the class A shares of some semi-closed graded debt bases expire, their names should also be class C shares. For example, Galaxy Tongli Debt A, which has expired for transformation, is changed to Galaxy Tongli Debt C after transformation.
Although the above-mentioned funds have become different investment targets or trading varieties due to different names, all the funds of a fund are operated by a fund manager or management team.