The difference between fund abc: When investing in MutualFund, the old saying that "good goods are not cheap" is sometimes quite correct. Basically, so far there is no conclusive evidence that high fund management fees can bring high returns. In fact, in order to get high returns, high-cost funds always have to bear high investment risks, that is to say, if the fund manager's high-risk investment fails, it will not only lose high investment costs, but also lose investment principal. When investing in mutual funds, the old saying "good goods are not cheap" is sometimes true. Basically, so far there is no conclusive evidence that high fund management fees can bring high returns. In fact, in order to get high returns, high-cost funds always have to bear high investment risks, that is to say, if the fund manager's high-risk investment fails, it will not only lose high investment costs, but also lose investment principal. Before investing, it is very important to fully understand the stocks of various mutual funds, so we will introduce three common mutual funds in the following article. First of all, how are * * * funds grouped? Different types and amounts of institutional investment expenses shared by different * * same funds on behalf of fund companies are different. For a specific fund, fund companies can set up as many as seven or more categories, among which three groups are more common: group A, group B and group C. ..

Advantages of Group A funds:

When purchasing Group A funds, part of the investment will be regarded as the upfront investment cost, so if you plan to make long-term investment, the one-time investment cost will be more economical in the long run.

It has the characteristics of "inflection point", which provides opportunities for investment cost discount. For example, the first turning point is $25,000, and your initial investment is $65,438+$00,000. When you reinvest another $65,438+$05,000, you reach the first turning point, and you can enjoy a certain discount on the investment cost of your new investment of $65,438+$05,000. At the same time, it also shows that the investment in group A funds is allowed to accumulate.

Some fund management companies are also willing to provide initial investment cost discounts for investors who have indicated their intention to invest after the "turning point" in the future from the beginning.

Disadvantages:

It is not suitable for cooperative short-term investment, because group A funds need a large initial investment amount. In other words, if you can't reach the "turning point" in a limited time, you will have to pay all the investment costs. If you deduct the investment expenses, your initial investment is USD 4,750, and the annual investment growth rate is 3%. If you decide to realize it after one year, you will lose the investment expenses of USD 107.50, and the yield will be reduced to 2. 15%.

Advantages of group b funds:

Unlike Group A funds, the investment expenses of this group of funds are allowed to be deferred. This is of great benefit to investors who intend to make long-term or small investments. Because there is no need to pay the investment fee immediately, all the investment amount will be used for investment to win the income. Moreover, the longer the fund is held, the lower the investment cost of delayed delivery.

Group b funds can be converted into group a funds.

Disadvantages:

The disadvantage of group B funds is that if you decide to withdraw funds within a certain period of time (usually 5 to 8 years), you still have to pay the deferred investment fee.

Group B funds do not provide the "inflection point" of deferred investment expenses, that is, regardless of the investment amount, investment expenses do not enjoy discounts.

Before Group B funds were converted into Group A funds, the investment management expenditure ratio of Group B funds was higher than that of Group A and Group C funds.

Advantages of Group C funds:

Different from the first two groups of funds, Group C funds are more conducive to short-term investment. When investing in Group C funds, all your initial investment will be used to win the income.

The later investment cost of the fund is relatively small, usually only 1%. In addition, usually after holding the fund for one year, the later investment expenses can be cancelled.

Disadvantages:

Although the fund's late payment fee is very small, if the fund withdraws within one year, investors still have to pay late payment fee.

The management expenditure ratio of group C funds is smaller than that of group B, but still higher than that of group A. ..

Unlike Group B funds, Group C funds cannot be converted into Group A funds, that is, they cannot enjoy a lower proportion of management expenditure. In other words, if you expect to invest in Group C funds for a long time, you will have to bear a lot of investment costs.

Finally, regardless of the investment amount, the investment expenses of Group C funds do not enjoy discounts.

Advantages and disadvantages of fund group use Now we use the information provided by ING to look at the characteristics of the above-mentioned funds, as well as the advantages and disadvantages of various funds. The comparison type code names of INGA, B and C groups of funds: upfront expenses, post-expenses, 12 B- 1 expense breakdown: aaimax 3% n/a0.25% return in 2004 = 16.09% management expenditure rate (MER)=65438 A) return in 2004 =15.23. Kloc-0/ 0,000 Minimum investment CAPMCXn/a 1% (due in one year) Return in 2004 = 15.5% Management Expenditure Ratio (MER)= 1.5%$ 1 0,000.

The content of this article comes from: China Law Publishing House "General Knowledge Series of Legal Life"