An investor holds a Class A fund and a Class C fund. Of course, these two funds have the same name except for different letters and belong to the same fund manager. However, this investor observed for a long time and found that the income of Class A funds and Class C funds was different, which made him feel strange. Why is the income of Class A and Class C funds different?

Why are the returns of funds A and C different?

1. The charging standard is different. Class C funds do not charge subscription fees, but charge sales service fees, which are accrued on a daily basis and withdrawn on a monthly basis. This sales service fee is deducted from the net value in advance, and it is not one-off. Therefore, investors will find that Class A funds have risen so much today, but why does Class C funds seem to have not risen as much as Class A funds, because there is a sales service fee in it.

2. The scale is different. Generally, the scale of Class A funds is larger than that of Class C funds, which also leads to the difference in the allocation of fund investment targets. Different fund investment targets will lead to different fund returns.