The fund managers, fund managers, investment directions and investment strategies of Class A and Class C of the same bond fund are the same, and even the investment positions are the same. So what's the difference between Class A and Class C of bond funds? Which is better to invest in?
What is the difference between Class A and Class C of bond funds?
1. Different fund net values: Generally speaking, fund A will be larger than fund C, and the specific net values of different funds can be inquired according to the fund official website.
2. Different transaction rates: There are differences between Class A and Class C bond funds. Class A needs to pay subscription fees and redemption fees, while Class C shares generally have no subscription fees, saving costs. After holding it for a period of time, it will save the redemption fee and only pay the sales service fee.
Is it better for bond funds to buy Class A or Class C?
To sum up, we will know how to choose.
Funds buying Class A are more suitable for long-term investment, while investors buying Class C are more suitable for short-term investment. This is because the expected return on short-term investment is not much. If you choose Class A, the purchase and redemption cost will be too high and the expected income will be greatly reduced. Fund c does not need to purchase redemption fees, saving costs.
The return rate of long-term investment is higher, and the expected return of buying class A funds is higher. If you hold it for more than a certain period, you can save the redemption rate.
The above is about the difference between Class A and Class C bond funds. I hope it will help you. Warm reminder, financial management is risky and investment needs to be cautious.