Is it better to have the letter A or C after the fund?
Fund A and Fund C actually have their own advantages and disadvantages. As far as ordinary open-end funds are concerned, fund A is more suitable for short-term investment and fund C is more suitable for long-term holding. In fact, the short term mentioned here is also relatively long. Generally speaking, short-term holdings (within 1 year) choose Class C, and long-term holdings (above 1 year) choose Class A..
The above characteristics of funds A and C are related to the difference in fees between them. The same funds A and C only have the difference in fees: Class A has subscription fees, but there is no sales service fee; There is no subscription fee for Class C, but there is a sales service fee.
The subscription fee shall be paid according to the subscription fee. If the subscription fee is 0. 12%, the subscription fee is 1 19.86 yuan, which will be deducted on the subscription day, regardless of the holding days. The sales service fee is calculated by days. If the rate is 0.20% yuan/year, the daily rate is 0.20%÷365=0.0005479%, which is directly deducted from the daily net value.
Therefore, the longer the holding days, the more the sales service fee will exceed the subscription fee. From then on, compared with A, holding C will be more uneconomical ... Of course, in the actual investment, we have to consider the redemption fee.