Different rate modes

Almost all bond funds are classified into three categories: A, B or even A, B and C. For example, Huaxia Bond and Dacheng Bond are classified into three categories: A, B and C, while ICBC Strong Bond, China Merchants Antai, Bosera Steady and Penghua Putian are classified into three categories: A and B.

This situation is mainly due to the different subscription rates of funds.

Generally speaking, Class A charges the front-end subscription fee at the time of subscription, and there is no redemption fee; Class B charges back-end subscription fees at the time of redemption, and does not charge redemption fees; There is no charge for class C subscription and redemption, but 0.3% of the annual sales service fee is charged, which is accrued from the fund assets every day. Because of the different charging modes, the net value of bond A/B is the same, while the net value of bond C is different from bond A/B because of the daily sales service fee. Usually, the specific rate of bond funds will be listed in detail in the prospectus of fund products.

Generally speaking, the front-end charging rate is 1%- 1.2%, and the back-end charging rate is 1.2%- 1.5%, which is slightly higher than the front-end charging rate. The sales service fee is usually 0.3% per year.

According to the holding period.

The special rate model is the sales service fee, because the charging model does not charge a one-time subscription fee, but charges the sales service fee according to the holding time.

Take three types of Huaxia bonds of Agricultural Bank of China as an example. Although there are sales expenses for Class C, the sales expenses of 0.3% are less than 1% for three years, which is lower than the front-end subscription expenses (asset appreciation is not considered for the time being).