In fact, for the same fund, whether it is Class A or Class C, their assets are all combined, their asset allocation is the same, and their operation mode is the same. The only difference is the charging method.
Class A shares are charged subscription fees, and no sales service fees are charged; There is no subscription fee for Class C shares, but there is a sales service fee. How to understand it?
Generally speaking, the subscription rate of class A shares of funds will be divided into several grades, which will decrease with the increase of subscription amount. There is no sales service fee, which will be deducted when the fund is purchased. There is a sales service fee for Class C shares, and there is only one rate standard. Consumer service fees are accrued on a daily basis. No subscription fee, other rates are the same.
There are two key factors that affect the difference between Class A and Class C fees: one is the subscription amount, and the other is the holding time.
Judging from the subscription amount, if your subscription amount is relatively small, then the rate of share A is relatively fixed. When the amount of funds reaches several million, it is more cost-effective to choose Class A. ..
From the perspective of holding time, the subscription fee for share A is charged at one time, and the longer the holding time, the more dominant it is; The sales service fee of C share is accrued on a daily basis, which has a short holding time, a relatively low rate and a low cost of short-term investment in C share.
No matter whether you buy A or C, the redemption rate is as high as 1.5% within 7 days, and the redemption cost is very high.
For users with fixed investment, is it better to choose Class A or Class C?
If you choose to invest in a fund, the core lies in long-term persistence, which usually takes a long time to reflect the role of buying in batches and sharing the cost equally. Therefore, Class A funds are relatively more suitable for fixed investment.