1, the fund index A needs to be charged for subscription when it is purchased, and it will not be charged for redemption if it is held for more than 2 years;
2. Fund index C does not charge subscription fee at the time of subscription, and does not charge redemption fee if it is held for more than 2 years;
3. Fund index A does not charge sales service fees, while fund index C does, which is generally 0.4%;
4. Short-term investment choice index fund C and long-term investment choice index fund A are more cost-effective.
1. Fund index A and index C represent different shares of an index fund, and the difference is mainly reflected in the handling fee, as follows:
1, the fund index A needs to be charged for subscription when it is purchased, and it will not be charged for redemption if it is held for more than 2 years;
2. Fund index C does not charge subscription fee at the time of subscription, and does not charge redemption fee if it is held for more than 2 years;
3. Fund index A does not charge sales service fees, while fund index C does, which is generally 0.4%;
4. Short-term investment choice index fund C and long-term investment choice index fund A are more cost-effective.
Second, the core of index fund operation is to obtain the average market income and fully disperse the risk of individual stocks by passively tracking the index.
For investors, it has the following advantages:
1, and the cost is relatively low. This can be said to be one of the most prominent advantages of index funds. Because the index fund adopts the investment strategy of tracking the index, the fund manager does not need to spend a lot of time and energy to choose the types and trading opportunities of investment tools such as stocks and bonds, thus reducing the management cost of the fund to some extent. On the other hand, because index funds generally adopt the strategy of buying and holding, they generally do not make frequent adjustments to their portfolios, but only make corresponding adjustments when the index stocks they track change, so their transaction costs will be lower than those of other active investment funds.
2. Reduce risks by fully diversifying investment. Because index funds widely diversify their investments by tracking the index, the return of their portfolios is basically the same as that of the corresponding index, and the fluctuation of any stock will not have much impact on the overall performance of index funds, thus reducing the investment risk of investors as a whole. Therefore, index fund investors do not have to worry about the impact of the sharp decline in individual stocks on fund returns.
3. High performance transparency. As long as investors see the rise and fall of the underlying index tracked by index funds, they can generally judge the changes in the net value of the index funds they invest in. For some investors who are good at judging the general trend, but are not sure about individual stocks, it is especially suitable for investing in index funds, thus avoiding the trouble of "earning the index but not making money".
4. The management process is less affected by human activities. The investment management process of index funds is mainly a passive tracking process of the corresponding target index, rather than frequent active investment. In this way, the influence of human factors can be reduced through more programmed transactions in the management process.