If it is the three types of funds of the Agricultural Bank of China, Class A generally represents the front-end expenses, Class B represents the back-end expenses, and Class C has no subscription fees, that is, there is no handling fee at the front-end and back-end. Bond funds classified as A and B generally have subscription fees for Class A, including front-end and back-end, while Class B bonds have no subscription fees.
It should be noted that the three classification methods of A, B and C are suitable for investors with different holding periods or different investment amounts. For investors who don't buy much money and hold it for more than two years, Class B is actually more suitable. Some bond funds only charge a one-time subscription fee of 0.6%, and the redemption fee for more than two years is zero.
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Advantages of bond funds:
1. Investors can realize bond funds with good liquidity at any time. Investors can redeem at any time according to the net asset value of the fund unit on the day of application, but it is more difficult for investors to realize cash if they invest in bank time deposits and certificate-based government bonds.
2. Buying bond funds can enjoy a variety of special treatments and get higher returns. For example, it can indirectly enter the bond issuance market and gain more investment opportunities; Can enter the interbank market and hold financial bonds with higher interest rates; You can enter the repurchase market and enjoy the treatment of super institutional investors who purchase new shares by financing and the interest income of risk-free reverse repurchase.
3. The cash assets of the fund are deposited in the custodian bank, enjoying the deposit interest rate of 65,438+0.89%, which is much higher than the deposit interest rate of 0.72% (including interest tax) of residents and enterprises; Enjoy various tax benefits. There is no need to pay stamp duty when purchasing and redeeming, and the dividends obtained can also be exempted from income tax; You can also enjoy the low transaction cost of fund bond investment.
4. For ordinary bonds, the two basic elements are interest rate sensitivity and credit quality. The rise and fall of bond prices is inversely proportional to the rise and fall of interest rates. The credit of a bond fund depends on the credit rating of the bonds it invests in.
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