Now people's living standards are getting higher and higher, and there are more and more disposable funds. Many people will choose to use funds or stocks as a financial management method to realize the effect of making money. When choosing a fund, you must do your homework, otherwise you are likely to be cut as a leek. In the most basic fund investment, what is the difference between C and A, and which one should be chosen? This is a problem that must be clarified.

The difference between class a and class c

In the financial market, C and A are neither good nor bad. The reason why A and C are used to distinguish two identical funds does not mean which fund is good or not, but only because the buyers have different needs. Funds A and C operate in the same way, and the biggest difference between them is the different rate structure. Class C fund shares do not charge the buyer's subscription fee, and they are held for more than seven days without redemption fee. The annual fee is 4% higher than that of Class A funds. According to the growth of funds held, the difference between the cumulative amount rate and the cumulative amount rate of C will become larger and larger. After two years, the rate of Class A will be much lower than that of Class C, so if you want to hold this fund for a long time and don't move frequently, then you can choose Class A, which is more suitable for people who are not very good at manipulating funds, have a good mentality, like to catch big fish for a long time and don't change positions frequently. Compared with Class A, Class C funds will have shorter control time. If you prefer to switch positions, but you don't switch positions frequently, usually once every three and a half months, you can choose a C-type fund.

Choose according to the length of holding position.

Therefore, whether the fund should buy Class C or Class A mainly depends on how long it is planned to hold the fund. If you plan to hold it for more than two years, it is generally recommended to buy Class A, because with the increase of time, the rate of Class A will be lower and lower, which will be more cost-effective. If it is held within two years, Class C is a better choice.