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Bond funds are divided into Category A/B and Category C. What is the difference between these two funds?

There are differences mainly in subscription fees, risks, subscription charging models, and payment methods.

The specific differences are as follows: 1. In terms of subscription fees: Category A generally represents front-end charges, category B represents back-end charges, and category C has no subscription fees, that is, there are no handling fees for either front-end or back-end; while A and B

There are two types of bond funds. Generally, Class A bonds have subscription fees, including front-end and back-end, while Class B bonds do not have any subscription fees.

2. In terms of risk: if held for a long time, the risk of type A is small; while the risk of type B is relatively high.

3. The charging model for subscription: The charging structure of Class A is consistent with that of stock funds. In addition to charging management fees and custody fees, the fund company also charges a one-time subscription fee and redemption fee.

Category B no longer charges separate fund subscription fees and redemption fees, but deducts corresponding sales service fees from fund assets at a fixed annual rate, the same as short-term debt funds and money market funds.

4. Payment method: The level of fees is also an important factor to consider when investing in bond funds.

The charging methods of bond funds are generally divided into three categories: Category A is a front-end charging model; Category B is a back-end charging model; Category C is a model that waives subscription/subscription and redemption fees and only charges sales service fees.