What is the difference between China Merchants Industrial Bond A and C?
The difference between China Merchants Industrial Bonds A and C;
In fact, the difference between China Merchants Industrial Bond Fund and C in terms of income and loss is very small, and their key difference lies in the difference in the cost of investment funds.
China Merchants Industrial Bond A belongs to Class A funds, which need to pay a certain fee when purchasing and redeeming. It is more suitable for investors who hold for a long time or have a large investment amount and can get a certain fee discount.
China Merchants Industrial Bond C belongs to Class C funds. Such funds are free at the subscription stage, and there is no need to pay redemption fees if they are held for more than one month. Its charging method is to charge 0.3% service fee every year, which is accrued every day. Suitable for investors who are expected to hold the fund for more than one month and have frequent transactions.
Why are Class A funds more expensive than Class C?
1, the price of class A funds is more expensive than that of class C funds, because class C funds have to accrue sales expenses in the fund assets every day, and the net value will decrease after the expenses are accrued, but class A funds do not need to accrue.
2. The expenses of Class A funds are more expensive than those of Class C funds, because Class A funds charge subscription fees, and most funds are exempted from redemption fees only after holding them for more than 2 years, while Class C funds do not need subscription fees, and most C funds are exempted from redemption fees after holding them for 7 days or 30 days.
Choosing different fund types according to your own investment style can greatly save transaction costs.