Generally speaking, according to the different charging methods of funds, they can be divided into Class A funds, Class B funds and Class C funds. Class A funds are front-end funds, which charge subscription fees and redemption fees. Class B funds are back-end fee-based funds, which mainly collect redemption fees; Class C funds charge sales service fees. So is Class A suitable for long-term investment? Let's get to know each other.

Is fund a suitable for long-term investment?

Class A funds are suitable for long-term holding. The main reason is the charge of funds. It is inevitable that Class A funds need to charge subscription fees, but Class A funds also need to charge redemption fees. The longer the funds are held, the lower the redemption rate. Generally, class A funds can be exempted from redemption fees if they hold 1 year or above, so class A funds are suitable for long-term investment, and long-term holding investment can reduce the investment cost of funds.

The longer the class A fund is held, the lower the redemption fee. If investors hold such funds for less than seven days, the fund redemption rate is 1.5%, which is relatively high.

Of course, when investing in a fund, judging whether a fund can invest for a long time depends not only on the fees of the fund, but also on the fund itself. If the fund does not perform well, long-term holding will only increase the losses of investors.

1.What's the difference between class A and class C funds?

Class A and Class C of index funds are the same in many ways. For example, fund managers, fund managers, investment directions and investment strategies are all the same, and even investment positions are the same. So what's the difference between Class A and Class C funds? How to distinguish them?

The difference between fund class A and fund class C

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: The biggest difference between Class A and Class C of index funds may be its rate. Class A needs to pay subscription fee and redemption fee, while share C generally has no subscription fee, which saves costs. After holding it for a period of time, the redemption fee will be saved, and only the sales service fee will be paid.

Second, is it better to buy fund class A or class C?

To sum up, we can understand that the fund buying Class A is more suitable for long-term investment, and the fund buying Class C is more suitable for short-term investment, because the expected return of short-term investment is not much. If Class A is selected, the purchase and redemption fee is too high and basically unprofitable, while Fund C does not need to purchase and redeem 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 3 years, the redemption rate can be saved.

1. First of all, let's look at the income problem that buying funds is most concerned about, and see what is the difference between A and C:

Comparison chart of income of the same fund A and C

From the above figure, we can see that the returns of A and C of the same fund are almost the same, and occasionally the gap may be only a few ten thousandths. Besides, today you added 0.0 1, and tomorrow I added 0.0 1. Obviously, when using the fund's income, it is impossible to tell which is better, A or C. This is because A and C of the same fund are the same regardless of management manager or position.

So since the returns of A and C are almost the same, why does the same company issue two identical funds? And changed the name almost the same? Is the fund company trying to make up the amount or just playing with us investors? Absolutely not. After all, the profit source of fund companies is to attract investors to buy their funds and earn management, formalities and other expenses. No company will set problems for customers and prevent them from sending them money (except, of course, some of our fucking monopoly industries).

So, what is the purpose of fund companies to set up A and C? What's the difference between them? How do we investors choose better? Let's continue:

2. the difference between the purchase prices of a and c:

The buying rates of the same fund A and C are different.

As can be seen from the above picture, the difference between A and C has already appeared. Class C funds generally do not need subscription fees (buying fees), while Class A funds generally need subscription fees (handling fees), and different subscription quotas and rates are different. )。 Seeing this, will many friends say: Then let's just buy C, which is definitely better without charging. If so, you underestimate the actuary of the fund company, and it is meaningless for me to write this. Why not just tell you to buy class C?

3. Different operating costs

The operating expenses of A and C are different.

As we can see from the above figure, there is no sales service fee for the operating expenses of Class A funds, which is deducted from our income every day. Although it is not much, it has accumulated a lot throughout the year. From the perspective of Funds A and C, the maximum subscription discount rate of Class A funds is 0. 1% (this is a one-time charge, and no fees will be deducted later), which means that we bought 65438+. We were deducted 10 yuan once, so we don't need to deduct the sales service fee in the future. Then let's look at category C. Although the purchase fee is not deducted, it will deduct 0.4% of our annual sales service fee. We also buy 65,438+00,000 yuan (regardless of the change of the net fund value and we will not redeem it within 65,438+0 years), and it will be deducted from 40 yuan within one year, that is.

4. Different selling prices:

The redemption rates of the same funds A and C are different.

As can be seen from this table, the selling rates of A and C are also different. We can see that the redemption rate of Class C funds is 0 after 7 days (different for each fund company, and 0 after 30 days), while Class A funds need to hold 1 year without redemption fee (some even need two years).

From the above comparison, we can draw the conclusion that:

Class A funds are suitable for long-term holding. Although the subscription fee will be deducted at the time of purchase, there is no need to deduct the sales service fee at the later stage. Through calculation, we find that it is more cost-effective to hold the fund for more than three months than to hold the C-type fund without subscription fee. As for the redemption fee, since it is intended to be held for a long time, it is not expected that the redemption fee will exceed 1 year. (The subscription rate and redemption rate of each fund are different, which should be calculated in combination with different rates. )

Class C funds are suitable for short-term holding. Needless to say, the advantages of class A are the disadvantages of class C, and the disadvantages of class A are the advantages of class C. ..

Therefore, fund companies set up A and C funds from the perspective of investors, because everyone's investment style is different: some people like short-term arbitrage, while others like long-term investment, so that more people with different investment styles can invest in their products. Fund companies can earn more benefits, which should be the starting point for them to take pains to set up these different kinds of products. We investors can also follow suit and choose investment products that suit our own style.