The advantage of Class C funds is that they do not charge subscription fees when purchasing funds. Many Class C funds have no redemption fees for more than 7 days or 30 days, so the cost of Class C funds is very low.

However, class C funds also have some shortcomings: although they do not charge subscription fees, they will collectively sell their expenses on a daily basis. If they hold Class C funds for a long time, the accrued sales expenses will be much higher than the subscription expenses of Class A funds. Therefore, Class C funds are not suitable for long-term holding, and usually investors should not hold them for more than one year.

Take Huaxia CSI 300ETF Link Fund as an example;

The subscription rate for funds below 1 10,000 is 0.12%; The holding period is more than 1 month and less than 1 year, and the redemption fee is exempted if it is more than 1 year; Class C funds do not charge subscription fees, and the sales fee is 0.5% per year. The redemption fee for funds held within 1 year is 0.5%, and funds held above 1 year are free.

If the holding amount is less than 1 year, the class A cost is: 0.12%+0.5% = 0.62%; 1 year or more: 0. 12%+0=0. 12% or less: 0.5%+0.5% = 1% for class C funds; Holding 0.5% over 1 year.