Why are funds divided into A and C?

Many novice investors find that funds are also divided into A and C when managing finances, but they don’t know much about these two funds, so they will be confused. Fog. So why is the same fund divided into A and C? Below, the editor will answer your questions one by one about why your funds are divided into A and C. I hope to be helpful!

1. What is the difference between funds a and c?

First of all, everyone must understand that only bond funds and currency funds are divided into three categories: a, b, c or a, b Two categories. Because it is the same fund, the investment portfolio is the same, and because their charging methods are different, the fees accrued are different, resulting in differences in net values! Category A and B are one-time charges, while category C charges are accrued every day cost.

Type a is a front-end charging model, and a one-time payment is required when subscribing for a fund;

Type b is a back-end charging model, which does not charge fees when subscribing, but charges when redeeming;

Category c charging model means that no subscription fee is charged, but sales and service fees are charged.

2. How to choose different charging models?

1. Investors who are suitable to choose Category A need to have the following two situations. One is investors with large purchase amounts. For example, some bond funds stipulate that investors with more than 5 million yuan who choose category A only need to pay a subscription (subscription) fee of 1,000 yuan per transaction, which is the lowest cost.

Why is the same fund classified as A? and C

The reason why the same fund is divided into A and C is because their fund trends are similar, but there will be differences in fees. When investors choose, they should base their choices on the fees. Choose the fund that suits you based on the differences.

In terms of sales and service fees: Fund Class A will not charge sales and service fees from investors, while Fund Class C will charge sales and service fees from investors.

In terms of subscription fees: Fund Class A will charge a subscription fee, and Fund Class C will not charge a subscription fee.

In terms of subscription fees: Fund Category A will charge a subscription fee, and Fund Category C will not charge a subscription fee.

In terms of redemption fees: Fund Category A is generally divided into 0 to 7 days, 7 to 365 days, 365 to 730 days, and more than 730 days. The longer the holding time, the higher the selling fee. The rate will be lower. Some funds that hold Class A funds for more than two years have no redemption fee, but the specifics depend on the fund regulations, because the regulations of each fund are somewhat different. There is a redemption fee for holding Fund C within 30 days, but there is no redemption fee for holding it for more than 30 days, and some even waive the redemption fee for holding it for more than 7 days.

From the perspective of handling fees, we can know that Fund Class A is more suitable for long-term fund holdings. If investors want to hold the fund for more than two years, it is recommended that Fund Class A be more suitable. If the holding period is relatively short, less than one year, general fund category C will be more suitable, so you can consider fund category A or category C based on this.

Can the fund recover its capital after losing 30 points?

Whether the fund can recover its capital after losing 30 points depends on the situation, because the fund's income is floating, and Funds are risky and their profitability is not guaranteed. It mainly depends on how the fund's subsequent market conditions are and whether it can rise back.

The rise and fall of the fund mainly depends on the direction of the investment target. If the investment target rises, the fund will also rise. If the investment target falls, the fund will also fall. Therefore, when investing in funds, It is necessary to analyze the situation of the fund's investment targets.

To give a simple example: stock funds mainly invest in stocks, then the stocks that the fund holds heavily are investment targets. We need to analyze whether the stocks that the fund holds heavily have prospects and whether there is room for growth. If the fund If the stocks with a heavy position are all rising, then the fund will also rise. If the stocks with a heavy position of the fund are all falling, then the fund will also fall.

How to recover the capital after a fund loss of 30 points

A fund loss of 30 points is in the range of serious losses, because the calculation formula for the capital recovery on the rise is: the capital recovery range on the rise = 1/ (1-Loss range)-1, that is to say, when an investor loses 30%, the return on capital gain =1/(1-30%)-1=60%, so when the fund loses 30%, it needs to rise by 60% % can get back the money.

It is difficult for a fund to rise by 60%. It basically takes a year or more. Only if the market is good can it rise back. If investors are very optimistic about the For this fund, you can add to your position when the fund falls.

It should be noted that adding a position means buying when the fund is losing money. This can reduce the cost of buying to a certain extent and help the fund recover its capital faster. Adding a position will increase the risk of the fund. That is to say, if the market situation of the fund is still relatively poor and the fund always falls more than it rises, then adding a position will accelerate the degree of losses.

So when you buy a fund, you should be cautious when adding positions. Unless you are very optimistic about this fund, you should consider adding positions. If you are not optimistic about the fund, you can redeem it in time to stop the loss and avoid the fund from losing money. Further losses will follow.

Why are funds divided into A and C?

The reason why the same fund is divided into A and C is because their fund trends are similar, but there will be differences in fees. Investment When choosing, investors should choose a fund that suits them based on the differences in charging methods.

In terms of sales and service fees: Fund Class A will not charge sales and service fees from investors, and Fund Class C will charge sales and service fees from investors.

In terms of subscription fees: Fund Class A will charge a subscription fee, and Fund Class C will not charge a subscription fee.

In terms of subscription fees: Fund Category A will charge a subscription fee, and Fund Category C will not charge a subscription fee.

In terms of redemption fees: Fund Class A is generally divided into 0 to 7 days, 7 to 365 days, 365 to 730 days, and more than 730 days. The longer the holding time, the higher the selling fee. The rate will be lower. Some funds that hold Class A funds for more than two years have no redemption fee, but the specifics depend on the fund regulations, because the regulations of each fund are somewhat different. There is a redemption fee for holding Fund C within 30 days, but there is no redemption fee for holding it for more than 30 days, and some even waive the redemption fee for holding it for more than 7 days.

From the perspective of handling fees, we can know that Fund Class A is more suitable for long-term fund holdings. If investors want to hold the fund for more than two years, it is recommended that Fund Class A be more suitable. If the holding period is relatively short, less than one year, general fund category C will be more suitable, so you can consider fund category A or category C based on this.