Why are the scales of Class A and Class C funds different? Is the fund moving in the same direction? When we buy a fund, we often see the letter ABC at the back of the fund, but we often don't know wh
Why are the scales of Class A and Class C funds different? Is the fund moving in the same direction? When we buy a fund, we often see the letter ABC at the back of the fund, but we often don't know what this letter means, and does it have any influence on our buying a fund? First of all, it's very simple. No matter whether it's a fund, B fund or C fund, it's the same fund managed by the same fund manager, and their land targets are the same, whether they invest in stocks or bonds or mix them. < /p > On the whole, no matter whether you buy Class A, Class B or Class C funds, their performance trends are almost the same. < /p > The difference between funds with different shares is that Class A, Class B and Class C funds charge different fees. < /p > Let's look at Class A funds first. Class A funds are front-end fees, that is, you have to pay subscription fees or subscription fees when you buy the funds, and you have to pay redemption fees when you redeem them. However, the longer you hold the redemption fees, the lower the fees will be. Generally, you hold them for more than two years, and there is basically no redemption fee. If you plan to hold a fund for more than one or two years, it is suitable to buy a class. < /p > Then look at Class C. The characteristics of Class C funds are very obvious. There is no charge for subscription, usually when you hold them for more than one month. Redemption of Class C funds is also free. Class C funds charge a sales service fee, which is about .3% to about .3% per year, and is accrued on a daily basis. If you only intend to hold the fund for a short time, you can buy Class C.. < /p > Let's look at Class B. Class B is a back-end charge. There is no charge when buying. When redeeming, different fees are charged according to the length of holding the fund. Generally, holding the fund for more than 5 years is zero. Category B funds have different meanings in different fund categories. For example, category B of monetary funds means a large sum, with an initial investment of 5 million. Category B and category C of bond funds are the same, and there is no charge for buying and a charge for redemption. < /p > The fund sizes of different share categories are counted separately and operated together.