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.