It is cost-effective to hold category C in the short term, and it is cost-effective to hold category A in the long term. Because Class C fund shares do not charge subscription fees or sales service fees, Class A is suitable for long-term investment. Class A funds have higher subscription and redemption fees and short-term investments are not cost-effective. Class C is suitable for short-term investment. Class C funds do not require subscription. The redemption fee and handling fee cost are low, and there is no need to consider the redemption fee when redeeming.

Open-end funds and closed-end funds*** both constitute the two basic modes of operation of funds. Open-end funds refer to investment funds whose fund size is not fixed but can issue new shares or be redeemed by investors at any time based on market supply and demand. Closed-end funds, relative to open-end funds, refer to investment funds whose fund size is determined before issuance and remains fixed after issuance and within a specified period. Open-end funds were not listed and traded on exchanges before 2004. They were generally purchased and redeemed through banks and other agency agencies or direct sales centers. After 2004, my country innovated the operation of open-end funds and allowed some open-end funds to be listed on stock exchanges. Trading, such open-end funds are called listed open-end funds.

The size of the fund is not fixed, and fund units can be sold to investors at any time or bought back at the request of investors; there is no duration and can theoretically exist forever; the price is determined by the net asset value. Closed-end funds have a fixed duration, during which the fund size is fixed. They are generally listed and traded on stock exchanges, and investors buy and sell fund units through the secondary market; they are not allowed to accept new shares or withdraw shares for a period of time until the new fund is established. A round of opening. When it is open, you can decide how much you propose or reinvest. Newcomers can also invest in shares at this time; the general opening time is 1 week and the closing time is 1 year; the price is determined by supply and demand, and the net value of the fund will affect the fund. Price, but the two are not unified. Usually closed-end funds trade at a discount. Open-end funds are one of the basic forms of fund operations around the world. Fund management companies can sell new fund units to investors at any time, and they must also buy back the fund units they hold at any time at the request of investors. Funds have different investment strategies. Since closed-end funds cannot be redeemed at any time, all funds raised can be used for investment, so that fund management companies can formulate long-term investment strategies and achieve long-term operating performance. Open-end funds must retain a portion of cash so that investors can redeem them at any time, but cannot all use them for long-term investments, and generally invest in assets with strong liquidity.