Compared with stock investment, fund financing is a low-risk financing method. General funds can be divided into Class A funds, Class B funds and Class C funds. Among them, Class B funds refer to funds with back-end expenses. Investing in Class B funds does not need to pay subscription fees, but only redemption fees. Class C funds mainly charge sales service fees. So what's the difference between class B funds and class C funds? Let's get to know each other.

The difference between class B funds and class C funds

In fact, from the concept of class B funds and class C funds, it is not difficult to see the difference between class B funds and class C funds. The biggest difference between these two types of funds lies in the different charging methods for subscription and redemption. Class B funds are back-end funds. When investing in Class B funds, investors don't have to pay the subscription fee, but when redeeming the fund, they have to charge the corresponding fund redemption fee. The fee structure of Class C funds includes two parts, namely, the fund sales service fee and the fund redemption fee. However, Class C funds can be exempted from redemption fee after seven days, and the sales service fee still exists. The longer investors hold Class C funds, the higher the sales service fee will be.

Based on the above, the biggest difference between Class B funds and Class C funds lies in the different charging rules. The sales service fee of Class C funds will increase with the increase of holding time, which is one of the main reasons why most investors are unwilling to hold Class C funds for a long time. After all, when the income is not ideal, holding such funds for a long time will only increase the cost, and when the fund income is not enough to pay the sales service fee, it will lead to investors' losses.