1. Through calculation and comparison, it can be concluded that the inflection point of cost change is about 9 months. If you are going to hold a fund with a holding period of less than 9 months, the cost of buying a class C fund is lower than that of buying a class A fund. When the holding period is more than nine months, the cost of purchasing class A funds is lower than that of class C funds. The difference between Class A and Class C funds: the recovery method is different: for the same fund, Class A shares have subscription fees and redemption fees. The longer the holding time, the smaller the redemption fee, and the lowest can be zero; There is no subscription fee for Class C stocks, but there is a sales service fee. It also charges a redemption fee, which decreases with the increase of holding time.
2. Different deduction points: Class C funds are designed for users who like short-term investment. So the first conclusion is that short-term investment can buy class C funds, and long-term investment can buy class A funds. Different net value: the sales service fee of Class C is accumulated daily and directly deducted from the fund assets, which is reflected in the daily net value. Therefore, the net value of class C funds is often lower than that of class A funds. The reason why class C funds can't be held for a long time is because the sales service fee will be too high and uneconomical. Compared with Class A funds and Class B funds, the biggest difference between Class C funds and Class B funds lies in the collection mechanism of subscription fees and redemption fees. Class c funds do not charge subscription fees or redemption fees, but class c funds need to charge sales service fees, which are calculated on a daily basis and deducted at one time when redeeming purchased class c funds.
3. The more sales service fees, it is not recommended to hold Class C funds for a long time. Generally short-term operation. The biggest difference between the three types of funds lies in the different charging mechanisms. In addition to the same management fees and custody fees, Class A funds also need to charge subscription fees and redemption fees in the process of subscription and redemption; Class B fund is a back-end charging mode, that is, when investors need to sell the fund after purchasing Class B fund, they will deduct the corresponding redemption fee; Class C funds do not need to pay subscription fees or redemption fees when purchasing and redeeming, but fund companies need to charge sales service fees. The sales service fee is calculated on a daily basis, which is directly proportional to the length of holding the fund. The longer the fund is held, the more the sales service fee will be.
4. Class A funds have subscription fees and redemption fees. The longer the holding time, the lower the redemption fee. If it is held for two years, the redemption fee is zero; There is no subscription fee for Class C stocks, but there is a sales service fee. It also charges a redemption fee. The handling fee decreases with the increase of holding time, so it is impossible to hold class C funds for a long time. Generally speaking. If you plan to make a short-term investment and hold it for less than half a year, it is recommended to buy a class C fund, which can reduce the transaction cost. If you plan to invest for a long time, the class A foundation is better. Although Class A funds have subscription fees, they have no redemption fees for long-term holding. The suffix of the same fund is divided into class A and class C, mainly stock funds or index funds. Different letter suffixes represent different charging methods.