According to the different fees, funds can be divided into Class A funds, Class B funds and Class C funds, but many investors are saying that Class C funds cannot be held for a long time, so why can't Class C funds be held for a long time? What is the reason? We have prepared relevant contents for your reference.

Class c funds are not suitable for long-term holding because class c funds charge sales service fees according to the holding time. The longer they hold positions, the higher the cost of holding positions. Most Class C funds can be held for 30 days without redemption fee. Therefore, if the fund holds a considerable income after 30 days, it can be redeemed if it reaches its own income. Class C funds are more suitable for short-term holding.

It should be noted that some C funds can be exempted from redemption fees as long as they are held for more than 7 days. This holding time mainly depends on the rules of the fund, which is generally explained in the fund rules.

Class C funds do not charge subscription fees when purchasing. As can be seen from the above, the sales service fee will be charged during the holding period, and the sales service fee will be charged according to the different holding time of investors. Generally, sales service fees will be charged by the day. The longer the holding time, the more sales service fees will be charged, so the higher the holding cost, the higher the investment cost. Therefore, class C funds are not suitable for long-term holding.

If you want to hold funds for a long time, you can generally consider Class A funds. Class A funds refer to funds with front-end fees, which charge subscription fees at the time of initial subscription, and then charge redemption fees according to the holding time, without charging sales fees.

The subscription fee of Class A funds is fixed, and the redemption fee is related to the holding days. Generally, the longer the holding days, the lower the interest rate of funds will be. Some Class A funds do not need to pay redemption fees for more than two years, so Class A funds are suitable for long-term holding, but the details still depend on how the fund rules are stipulated. The general foundation is clearly written in the regulations.

To buy a fund, we should not only consider the cost of the fund, but also consider whether the fund has a development prospect and a large room for growth, because if the selected fund is not good, the fund will always fall more and rise less, and the fund will still lose money, while Class A funds and Class C funds mainly consider the cost. If you want to hold it for a long time, you can consider short-term holding of Class A funds and Class C funds.