What does the fund ABCDE class mean?
1. Monetary Fund
The common suffixes of money funds are A and B, and the main difference lies in the subscription threshold and sales service fee (money funds have no subscription and redemption fee). The threshold of Monetary Fund A is relatively low, generally from 100 yuan, but also from 1 yuan, which has a wide range of application and is suitable for most people. The sales service fee is about 0.25% per year.
Monetary Fund B is for institutional investors or customers with large funds. The minimum subscription starting point is generally 5 million, and the sales service fee is lower than Class A, generally 0.0 1%.
In addition, there is another situation in which there are only Class A and Class C, but there is no Class B. At this time, the share of Class C here is equivalent to Class B mentioned above, with high subscription threshold and low sales service fee.
2. Bond funds
Bond funds are generally divided into three categories: A, B and C. The main difference lies in the different charging methods. The subscription fee is charged at the front end of bond fund A, and the subscription fee is generally 1.5% when buying the fund. Buying at Alipay or a fund company is generally a discount of 1 or a 40% discount. A redemption fee is charged when the fund is redeemed.
Class B bond fund refers to the subscription fee charged by the back end, that is, no fee is charged when the fund is purchased, and then charged when it is redeemed. The subscription fee charged by the back end is determined according to the length of time of holding the fund, and each fund is different. The longer the general fund is held, the lower the cost.
In addition, both Class A and Class B have to charge a certain fund management fee and custody fee (deducted from the fund assets), but there is no sales service fee.
Bond Fund C does not charge subscription fee and redemption fee, but charges daily sales service fee. Some debt bases only have AB and no C. In this case, Class B is similar to Class C above.
3. Mixed funds
Most hybrid funds do not have suffixes, and a few of them are divided into Class A and Class C. The main difference lies in the different charging methods, which are similar to bond funds. Class A: refers to the subscription fee charged by the front end; Class C: No subscription fee, but sales service fee.
4. Equity funds
AB in stock funds usually appears in graded funds, which is quite different from AB mentioned above. The basic share of graded funds is called parent fund share, which can be divided into priority share (A share) and enterprising share (B share) according to different risk-return characteristics. A shares: the expected risk and return are low, and the benchmark return distribution can be obtained first; Share b: there is "leverage". Generally speaking, if you borrow money from share A to invest, you may have excess returns, but you may also take greater risks.
In addition, Class D funds generally belong to the classification of monetary funds, and generally refer to newly added fund shares. There are also funds sold on designated platforms. Fund e generally means that such shares are only sold in special channels, generally referring to Internet platform sales.
In fact, at present, the suffix letters of most funds are ABC. You only need to know the funds with suffixes A, B and C, but the suffixes of different types of funds have different meanings. You should distinguish them. Finally, remind investors that the fund is risky and investment needs to be cautious.