What do a, b and c after the fund name mean?
Generally speaking, A, B and C after the fund name refer to the charging method. A stands for front-end charges, including subscription fees and redemption fees; B stands for back-end charge, and there is no charge at the time of subscription, and the subscription fee and redemption fee are charged at the time of redemption; C stands for not charging subscription fee and redemption fee, but charging sales service fee. The longer the holding time, the higher the sales service fee.
As we all know, in the past, funds were generally purchased through banks, and there was no discount for purchasing funds in banks. The subscription fee for Class A funds is about 1% to 1.5%, and the redemption fee is 0.5%. If it is held for a long time, the redemption fee will be waived.
Class B funds do not charge subscription fees at the time of subscription. If the holding time is short, the redemption fee is relatively high. If it is held for a long time (exceeding the requirements of Class A), the redemption fee will be exempted, but the subscription fee will be charged at the time of redemption.
With the development of the Internet, Internet fund platforms such as Ant Wealth, Egg Roll Fund and Tian Tian Fund have emerged. When purchasing funds through these fund sales platforms, the subscription fee is generally 10%, which is almost 0. 1% or 0. 15%, which is more cost-effective for investors.
Let's look at class C funds. Class C funds do not charge subscription fees and redemption fees, but charge sales service fees. The sales service fee of Class C funds is generally 0.2% to 0.5% per year. The longer it lasts, the higher the cost.
To sum up, it is more appropriate to choose Class C funds for short-term investment, and it is more cost-effective to choose Class A funds for long-term investment. Warm reminder, the fund is risky and needs to be cautious in investment.
Introduction reading:
Is JD Finance Yilianzhi risky? Within 500,000 yuan, the insurance will pay in full.