Generally speaking, if the investment period of Class C funds is determined according to the fee collection mechanism, it is more suitable for short-term investment, and the holding time generally does not exceed 9 months. Although there is no subscription fee for Class C funds, management fees will be accrued daily. The longer the time, the more management fees. The cost structure considered in fund investment generally refers to the sales service fee and redemption fee, and the sales service fee will increase with the time of holding fund shares.

After calculation and comparison, it can be concluded that the inflection point of cost change is about 9 months. If you are going to hold the fund for nine months, the cost of buying a class C fund is lower than that of buying a class A fund. When the holding period is more than nine months, the cost of purchasing class A funds is lower than that of class C funds.

1. Description of fund expenses: The gross profit of fund income needs to be deducted from various expenses, including subscription fees, redemption fees and management fees. This is the real investment income. Fund expenses generally include two types: (1) expenses incurred in the process of fund sales and borne by fund investors themselves, mainly including subscription fees, subscription fees, redemption fees, fund conversion fees, etc. These fees are generally charged directly when investors subscribe, purchase, redeem or convert. The subscription fee can be charged when investors buy funds, that is, the front-end subscription fee; It can also be charged when investors sell funds, that is, the back-end subscription fee, and its rate is generally decreasing according to the holding period. (2) The expenses incurred in the process of fund management mainly include fund management fees, fund custody fees and information disclosure fees. These expenses are borne by the assets of the fund.

2. According to the different subscription rates of funds, most bond funds are divided into three categories: A, B and C, and the subscription rates of funds are closely related to the expected holding time of investors. Class A bond funds are front-end expenses and generally have lower rates. If investors have no judgment on the investment period, they can consider buying Class A funds. The back-end fees of Class B bond funds are higher than those of Class A. If investors decide to hold them for more than 3 years, they can consider choosing Class B. Because the longer they hold them, the less they charge. Class C bond funds have no subscription fee, but they have an annual sales service fee of 0.3%, and the three-year sales service fee is less than 1%, which is lower than that of Class A. Therefore, if they are short-term investments, they should choose Class C..