4. Different handling fees: the subscription and redemption fees of Class A funds are all collected at one time, while Class C funds need to collect sales service fees every day. The longer they hold positions, the higher the sales service fee. Because there is no sales service fee, buying Class A funds is more suitable for long-term investors; Because there is no subscription fee, it is more suitable for short-term investors to buy class C funds.
According to whether fund units can be increased or redeemed, they can be divided into open-end funds and closed-end funds. Open-end funds are not traded on the market (as the case may be), but are purchased and redeemed by banks, brokers and fund companies, and the fund scale is not fixed; Closed-end funds have a fixed duration and are generally listed and traded on the stock exchange. Investors buy and sell fund shares through the secondary market.
According to different organizational forms, it can be divided into corporate funds and contractual funds. A fund is established by issuing fund shares to establish an investment fund company, which is usually called a corporate fund; The establishment of fund managers, fund custodians and investors through fund contracts is usually called contractual funds. China's securities investment funds are all contractual funds.