First, the difference between bond funds and Agricultural Bank of China
1, A, B, C The biggest difference is the subscription fee and redemption fee of the fund:
Class A stands for front-end expenses. Investors need to pay subscription fees when purchasing funds, but they don't need to redeem the funds after they expire. Class B represents back-end fees, which are charged when the funds are redeemed at maturity. The interest rate is usually related to the length of time the fund is held. The longer the holding time, the lower the redemption rate. Class C stands for front-end and back-end without charge.
2. Although there is no subscription fee for Class C funds, generally such funds will charge a sales service fee, similar to the fund management fee, which is charged on a daily basis, and the rate is generally around 0.3%. There are also some A-type and B-type funds that do not charge subscription fees or sales service fees, but will charge certain fund management fees and custody fees.
Second, how to choose the bond fund Agricultural Bank of China
How to choose A, B and C mainly depends on the duration of fund investment. If the holding time is short, such as within two years, or the holding time is uncertain, then you can choose A or C. Although C has a certain sales service fee, the rate is relatively low and it is charged on a daily basis. If you decide to hold it for a long time, for example, for more than three years, then you can choose Category B. For long-term funds, the rate is relatively low. Many funds stipulate how many years you can hold it, and there is no subscription fee.