For financial products such as funds, the types of funds are often distinguished by some suffixes of the funds. Common fund classifications are classified according to the fees of the funds. Different funds The letters represent funds with different fee types, and the letters a, b, and c are often used to distinguish them. So what do fund A shares and C shares mean? Let’s find out together.
What do fund A shares and C shares mean?
The meaning of fund A shares and C shares can be explained from two perspectives. One is directly from the fund classification. The second is the introduction of related stocks.
1 From a fund perspective: Fund A represents a front-end fee-based fund, and you need to pay a certain subscription fee or redemption fee when purchasing a fund; while Fund C refers to a fund that does not charge subscription fees or redemption fees. A fee-based fund will charge a sales and service fee, and as investors hold the fund longer, the fund's sales and service fee will be higher.
2 From a stock perspective: Fund A shares often refer to RMB common stocks, which are issued by companies registered in China, listed domestically, and have a par value in RMB; while C shares refer to non-RMB stocks of listed companies. Circulable legal person shares.