On some fund sales platforms, we can see that some fund names are followed by the letter A, and some fund names are followed by the letter C. So what do Class A funds and Class C funds mean? What's the difference between them? Let's have a brief talk, please see below.

what's the difference between class a funds and class c funds?

Class A funds and Class C funds are the same fund, and their fund names are only different from the letters A and C. The difference between Class A funds and Class C funds is only the different charging methods.

class a funds charge subscription fees and do not charge sales service fees; Class C funds do not charge subscription fees, but charge sales service fees. The subscription fee and sales service fee are paid to the fund sales organization. The subscription fee is charged at one time and deducted when buying the fund. The sales service fee is charged annually and accrued in the net value of the fund.

choose class a fund or class c fund?

since class a funds and class c funds are essentially the same fund, it is worth studying whether to choose class a or class C. For stock funds, the fund subscription fee is generally 1.5%, and there is a 1% discount for subscription through the third-party fund sales platform, which is .15%. The fund sales service fee is generally .5%-.8% per year.

Therefore, if the subscription fee of the fund is not discounted, it is more cost-effective to make short-term investments and choose Class C funds; If the subscription fee of the fund is discounted, it is best to choose Class A funds for long-term investment.

for money funds, fund companies generally don't charge redemption fees, so it's not as cost-effective to buy Class C funds with sales service fees as Class A funds. Well, what's the difference between class A funds and class C funds is introduced here, hoping to help everyone. Warm reminder, financial management is risky and investment needs to be cautious.