What do you mean by adding letters a, b and c to the fund name?
To understand the meaning of these letters, we must first know the related concepts of fund fees, such as subscription fees, redemption fees, sales service fees and so on. The subscription fee is a hard fee given by the fund company to the consignment platform, and the discounts on different platforms are different. For example, the subscription fee of Alipay and Tian Tian Fund is 1 discount, and there are few discounts through bank channels.
The redemption fee is paid to the fund company itself, and there is little difference in redemption fees from different channels. As for the sales service fee, this is also for various consignment platforms, such as Ant Fund, Tian Tian Fund, bank brokers and other channels.
The letters A, B and C added after the fund name are related to different charging methods. For different fund types, various letters have different meanings.
I. A and B categories of graded funds
If a fund has only Class A and Class B shares, then such funds are classified funds. Graded funds are divided into parent fund, sub-fund A and sub-fund B. Class A lends money to class B and charges fixed interest, which is equivalent to bonds. Class B investment in the stock market, double the initial leverage, high risk and high expected return. As graded funds are about to withdraw from the historical stage, we don't need to know in detail, just know.
2. A, B and C of equity funds
Class A of equity funds refers to the front-end fees, and the first-day subscription and redemption fees are charged according to the holding time. This is the most common charging method.
Class B refers to the back-end charges, that is, the subscription fee and redemption fee are charged at the time of redemption. If you hold it for a long time, these two fees can be waived.
Class C means that the subscription fee is not charged and the sales service fee is accrued on a daily basis. This kind of fund is designed to facilitate investors' short-term trading. Many funds have Class A and Class C. If you hold them for more than two or three years, you can buy Class A. If you only intend to hold them for about one year, you can choose Class C. ..
Ok, that's all the letters after the fund name. I hope it will help you. Warm reminder, the fund is risky and needs to be cautious in investment.