The same fund is divided into three categories: A, B and C. The core difference is the subscription fee. If it is the three types of funds of the Agricultural Bank of China, Class A generally represents the front-end expenses, Class B represents the back-end expenses, and Class C does not have subscription fees, but charges fund sales service fees.

Class A front-end charging mode requires a handling fee for subscription or subscription, which is generally around 0.8- 1.0%. If there is no judgment on the investment period, generally consider Class A front-end charges.

Class B back-end charging mode, there is no charge for subscription or subscription for the time being, and it is decided whether to supplement it according to the holding time when redeeming.

If the subscription or subscription fee can be held for more than 3 years, you can choose category B,

Class C does not charge subscription fees, but charges fund sales service mode, and the rate is charged on a daily net basis and settled on a monthly basis. If the fund sales service rate is 0.4% per annum, the annual income of Class A fund share is 5%, and that of Class C fund share is 4.6%.

Therefore, the sales service rate model is only applicable to short-term holdings of less than 2 years. If you hold 10 years, you will lose 4% of your income. Obviously, paying 0.8% subscription fee is still a class B cost-effective.