Most of the assets of bond funds are invested in bonds, which are less affected by the stock market, so bond funds are usually regarded as stable funds by investors. There are many bond funds, and even the same bond fund name will have two different letters, A and C. Which bond fund is better, A or C?

The main difference between Class A and Class C bond funds lies in the different charging rules of fund transaction fees, which generally include subscription fees, redemption fees and sales fees.

1, subscription (subscription) fee

Class A bond funds charge subscription fees, while Class C bond funds do not charge subscription fees.

Subscription fee refers to the fee paid by investors when they purchase funds. Generally, subscription rates are charged according to different proportions according to the subscription amount of the fund. Take China Convertible Bond A as an example. If the subscription amount is less than 6,543.8+0,000 yuan, the subscription fee will be charged at 0.8% (some platforms will be charged at a preferential rate of 654.38+0%), and if it exceeds 5 million yuan, it will be charged at a fixed rate of 6,543.8+0,000 yuan.

2. redemption fee

Both Class A and Class C bond funds have to pay redemption fees. The longer the holding time, the lower the redemption rate, and the redemption fee will be waived for a certain number of days. However, there are differences between Class A and Class C in setting the number of days. Under the same holding days, the redemption rate of Class A is generally higher than that of Class C. ..

Or take China convertible bonds as an example:

Class A:1.5% within 7 days; If it is held for more than 7 days but less than 365 days, it will be charged at 0. 1%; If it is held for more than 365 days and less than 730 days, it will be charged at 0.05%; There is no redemption fee for holding for 730 days.

Class C: 0.5% for holding within 65438+7 days; If it is held for more than 7 days and less than 30 days, it will be charged at 0. 1%; Hold it for 30 days without redemption fee.

3. Sales service fee

Bond funds do not charge class A and class C sales service fees, and the sales service fees are accrued from the fund assets every day.

On the whole, if the fund is expected to be held for less than 6 months, it will be more cost-effective for the C-type foundation that does not charge subscription fees but charges daily sales fees. If you plan to hold it for a long time, you can choose Class A free of sales service fee.