ABC after the fund name usually indicates the classification or charging method of the fund. The following are the meanings of common ABC:
Class A funds: These funds belong to the front-end charging mode, that is, investors charge subscription fees when purchasing funds. This model is more beneficial to long-term investors, because the subscription fee may decrease with the increase of investment.
Class B funds: These funds belong to the back-end charging mode, that is, the subscription fee is charged only when investors redeem the funds. This model is more beneficial to short-term investors, because investors can be exempted from subscription fees if they redeem funds in a short time.
Class C funds: These funds do not charge subscription fees, but will charge a certain sales service fee. This model is suitable for investors who want to reduce transaction costs, but it should be noted that sales service fees may increase investment costs over time.
It should be noted that the ABC classification of different fund companies may be different, and the specific meaning needs to be inquired or consulted in the fund prospectus. When investing in a fund, investors need to know the investment strategy, risk level, cost structure and other factors of the fund, so as to choose a suitable fund according to their investment objectives and risk tolerance.