Many fund abbreviations will be followed by different letters such as A, B, C, etc., showing that the same fund has different fund shares.

Some are divided according to charging model, some are divided according to holding amount, some are divided according to risk-return structure, some are divided according to investor type or sales channel, some are divided according to transaction currency, etc.

However, there is no unified standard for the specific meanings of these letters, and the same letters may have different meanings under different funds.

Among them, the most common way to classify shares is according to different charging methods. A common (but not absolute) definition is to divide Class A shares that charge subscription and redemption fees and Class C shares that charge sales and service fees.

The conclusion is at the end of the article.

The most traditional Class A and the marginalized Class B, the earliest open-end funds, all adopt the most traditional model of charging subscription and redemption fees without exception.

The first company to charge classified fees should be the China Bond Fund, which was established in October 2002.

The fund has two classification methods: front-end charging model (Category A) and back-end charging model (Category B).

Among them, front-end charging is a model in which subscription fees are charged at the time of subscription. Back-end charging means that no subscription fee is temporarily charged at the time of subscription. This fee can be deferred until redemption, and like the redemption fee, the longer the holding time, the higher the charge.

The lower.

For an investor who intends to hold it for a long time, wouldn’t it be great if the subscription fee can be reduced or even eliminated for long-term holding?

However, the sales agency is not happy. It used to charge a handling fee for selling a fund, but now the handling fee has to be delayed and may be gone in the end. Isn't that very painful?

Therefore, this type of B charging model is not popular and is gradually marginalized. In recent years, new products have almost no such design.

The rise of Class C charging methods The earliest Class C model product was Southern Dolly’s short- and medium-term bonds (now Southern Dolly Enhanced Bonds) established in March 2006.

This product creatively introduces a charging model of "continuous sales fee". It no longer charges traditional subscription and redemption fees, but charges a certain percentage of fees every day.

However, there was only one share of Southern Dolly at that time, so there was no such thing as "Category C" at that time.

Not long after Southern Dolly was established, China Bond launched the Class C share of China Bond in April 2006.

This is how the “C class” share was officially born.

Compared with the traditional Class A model, Class C does not charge fees during the subscription and redemption stages, which reduces investors’ short-term holding costs. Since there are no explicit fees, the investor experience is better and the flexibility is better.

Since its birth, the “Chinese characteristics” of the Class C model has gradually been recognized by investors and promoted.

For a long time in the beginning, the Class C model was only available in bond funds. It was not until 2013 that Class C shares appeared in hybrid funds and stock funds. However, the number of products with Class C shares was not large, and it did not become a "standard model".

match".

Guangfa, which really vigorously promotes the C-type model.

GF Fund began to launch the "GF C Plan" in 2014, vigorously promoting the layout of partial stock fund C products.

Recently, "Guangfa Plan C", a preferential plan for partial stock funds under GF Fund, announced that it has been launched on the GF Fund APP. This means that in the future, investors can also enjoy zero subscription fee to buy partial stock funds through the mobile APP, making financial management easier anytime and anywhere.

Follow your heart.

GF Plan C refers to the C-type charging method for partial stock funds, that is, you can enjoy zero subscription fee when purchasing partial stock funds on the official website of GF Fund, zero redemption fee for holding for more than 30 days, and only charge 0.4% of daily withdrawals.

-0.6%/year sales and service fee.

After holding for 30 days, you can also switch between funds in Plan C for free.

At present, the fund pool of GF Plan C includes 26 partial stock products of GF, including index funds, active funds and QDII funds, providing investors with diversified choices.

Shanghai Securities News, June 30, 2014 Nowadays, whether it is partial to stocks or partial to bonds, fund A+C seems to have become the standard.

The critical point of A or C. If the fund you want to buy has both Class A and Class C shares, which one should you choose?

Simple conclusion: short-term funds buy category C, and long-term funds buy category A. There is a critical point in the middle.

Class A will charge a one-time subscription fee, while Class C will be charged a continuous annualized rate, which will gradually increase with the holding time.

For example, Yun Shu found a fund. The subscription fee for Class A shares is as follows: the redemption rate is as follows: At the same time, the sales service fee for Class C is 0.5%, there is no subscription fee, and the redemption fee is as follows: How to calculate the critical point

Woolen cloth?

Generally speaking, the short-term cost of Class A is higher than that of Class C, and at the critical point, the cost of both is the same.