With the gradual opening of the domestic financial market and the steady development of the economy, fixed-income products such as bond funds have attracted more and more investors' attention. However, in the face of many different types of bond fund products in the market, how should investors choose? This paper will compare the advantages and disadvantages and applicable scenarios of bond funds A and C from multiple angles to help readers better choose their own investment products.

I. Basic differences between Class A and Class C bond funds

There are differences between Class A and Class C bond funds in operation, fund net value calculation method and investment threshold.

1. Operation mode

Class a bond funds usually use front-end fees, that is, they pay management fees at the time of purchase; Class C bond funds usually use back-end fees, that is, they pay management fees at the time of redemption.

2. Calculation method of fund net value

When calculating the net value of Class A bond funds, multiply the daily net value by the number of shares, plus the management fees payable; When calculating the net value of C bond fund, the net value has been deducted from the management fee, and investors do not need to pay the management fee.

3. Investment threshold

The investment threshold of Class A bond funds is usually higher than that of Class C bond funds, but it is also more stable and safer. In contrast, the investment threshold of Class C bond funds is low and the risk is relatively high.

Second, the advantages and disadvantages of Class A and Class C bond funds

1. investment period

In the case of short investment period, it is suggested to choose Class A bond funds, because of the management cost of funds and other reasons, Class C bond funds often have low short-term returns.

2. Yield

If the investment period is long, investors can compare the historical rate of return and actual performance of the two funds and choose the fund with higher efficiency. Since the income of Class C funds is higher than that of Class A funds, Class C bond funds are suitable for some investors who pursue long-term investment with high risks and high returns.

3. Credit risk

Class A bond funds usually invest in corporate bonds with low credit risk and stable cash flow, with low risk. On the contrary, Class C bond funds tend to invest in bonds with higher credit risk. If investors have low risk tolerance, they should choose a bond fund.

4. Asset liquidity

Class C bond funds have strong liquidity, and the liquidity advantage will be reflected when the market is strong. However, due to the limited investment scope, the liquidity of Class A bond funds is weak.

Third, comprehensive analysis.

When choosing a bond fund, you should first decide whether to choose a fund or c fund according to your risk ability and investment period. For low-risk investors and short-term investors, doubling the short-term selection of Class A bond funds can be described as low risk, and choosing Class C bond funds for a long time can get higher returns. For long-term investors with high risk tolerance, class C funds should be chosen to obtain higher returns and create higher value, even though the corresponding risks will actually be higher.