Fund share refers to the certificate issued by the fund sponsors to the public, indicating that the holder has the right to distribute the proceeds of fund property according to his share, to obtain the remaining property after liquidation, and to assume corresponding obligations.

ABC shares of funds refer to different types of funds distinguished by letters. Generally speaking, there are three situations:

1. Fund rate models are different, and fund companies use letters to distinguish different rate models.

2. Different fund sales channels are used to distinguish different sales channels (this situation is mostly due to different rates in essence, but there are also a few funds that do have the same rates but still classify them).

3. In graded funds, it is used to distinguish different fund risk levels.

Take bond funds as an example:

Bond funds have three suffixes: A, B and C. The difference is the difference between subscription fee and redemption fee.

Class A share: indicates front-end charges. It means that you have to pay a certain subscription fee to buy such funds. The general handling fee is 0.6%.

Class B share: indicates back-end charges. That is, pay the purchase fee when redeeming. This fee depends on the length of time you have held this fund, and each fund is different.

Generally speaking, the longer the fund is held, the less the cost.

Class C share: neither front-end charge nor back-end charge. Investors do not need handling fees when subscribing and redeeming, but compared with Class A shares and Class B shares, it has an extra sales service fee.

It is worth noting that:

Both Class A shares and Class B shares are charged a certain fund management fee and custody fee, but no sales service fee is charged.