A stands for front-end charges, including subscription fees and redemption fees.
B stands for back-end charges. There is no charge at the time of subscription and charge at the time of redemption.
C stands for not charging subscription redemption fee, but charging sales service fee according to holding time.
Remarks:
Let's talk about Class A and Class B first.
In the past, when purchasing funds, they were mainly purchased through bank channels, and the bank subscription fee was not discounted.
Therefore, the subscription fee for Class A funds is about 1%- 1.5%, and the redemption fee is 0.5%, which is exempted after long-term investment.
Class B funds do not charge subscription fees when subscribing. If it is held for a short time, the redemption fee is very high. After long-term holding (exceeding Class A), the redemption fee will be exempted.
But later, a fund sales platform with a 10% discount on subscription fee appeared, such as Ant, Egg Roll and Tian Tian. So the difference between class B and class A is very small.
Sometimes Class A has more advantages, and many funds don't have Class B, so it is good to choose a platform with discount to buy Class A..
How to choose Class A and Class C funds?
For the discount platform to purchase Class A funds, if it is invested for a long time, the subscription fee is about 0. 1%, and the redemption fee is exempted after long-term holding.
There is no subscription fee and redemption fee for Class C (but there will be a punitive redemption fee of 1.5% if it is held for less than 7 days), but the sales service fee for Class C is actually quite high.
The sales service fee is generally 0.2-0.5%/ year, which is charged according to the holding time.
Class C funds are usually provided to short-term investors.
If it is a long-term investment, class A foundation has more advantages.
Let's analyze it through concrete examples, such as Tian Hong Shen Hu 300A and Tian Hong Shen Hu 300C.
Class A and Class C funds have the same general investment strategy and the same management fee and custody fee, so there is little difference in investment income, mainly the difference in transaction cost.
The subscription fee for Class A fund 00096 1 is 1%. But now through the channels of ants, everyday, egg rolls and so on, the subscription fee is 0. 1%.
The redemption rate of Class A fund 00096 1 is 0.05%. Generally speaking, the redemption rate of index funds is usually 0.5%, and the redemption rate in Tian Hong is relatively low.
Class C fund 0059 18 has no subscription fee and redemption fee (redemption fee of 1.5% is charged if it is held for less than 7 days), but it has an annual sales service fee of 0.2%. According to the holding date, it will be charged for one day.
If we buy 0059 1 8 on 65438+ 10/day, as long as we hold 1 year, the sales service fee will be 0.2%. Continue to hold it next year and continue to charge 0.2%.
It can be seen that in fact, the longer the investment time, the higher the cost of class C funds.
If the investment time is relatively short, the cost of class C funds will be more cost-effective.
▼ Punitive interest rate
It should be noted that both Class A and Class C funds have a stipulation that if they are redeemed within 7 days, there will be a punitive redemption rate of 1.5%.
This money is accounted into the net value of the fund. For the old fund holders, this rule is still beneficial.
But for short-term investors, this rule will be fatal. So don't redeem short-term funds frequently.
If you really want to buy and sell in a few days, you can try through the on-site channels.
ETF funds on the market are specially prepared for short-term trading, while OTC funds are actually more suitable for long-term investment.
So,
Invest through a discounted fund platform and choose A.
Long-term investment, choose a.
Short-term investment, choose C.
When we invest in index funds, we basically buy long-term investments when they are undervalued. Therefore, the index funds invested by screws are basically Class A, which are invested through the discount platform.