A fund in a broad sense refers to a certain amount of funds set up for a certain purpose, mainly including trust and investment funds, provident funds, insurance funds, retirement funds and funds of various foundations. But we generally think that it is a fund with a specific purpose and purpose, mainly referring to securities investment funds.

Is there a difference between fund A and fund C?

There are differences between the investments of Fund A and Fund C, which can be mainly analyzed from these two aspects:

1 charging mode

Class A is a front-end charging mode, which is paid in one lump sum when purchasing funds, so the performance is relatively stable, and long-term investment will have a good expected annualized income. Class C charging mode refers to charging sales service fees without subscription fees, which may lead to large-scale short-term arbitrage.

2 the choice of investors

Investors who are suitable to choose Class A need to meet the following two conditions: First, investors who buy a large amount. As stipulated by some bond funds, investors with more than 5 million yuan only need to pay a subscription fee of 1 0,000 yuan each to choose Class A, with the lowest cost; The other is investors whose funds have not been used for a long time. If you want to choose Class C, it is more suitable for some investors with small purchase amount and uncertain holding time. The investment period can be long or short, and the amount can be large or small. This is mainly because the subscription fee is zero, the 30-day redemption fee is zero, and the sales service fee is only charged at the annual rate of 0.3%, which greatly reduces the transaction cost of investors.

The above introduces the difference between funds A and C from two aspects, hoping to help everyone.