What do fund classes (Class A, Class C, etc.) mean?

Even the same fund is divided into several classes depending on how sales charges and distribution fees are collected.

According to the Financial Supervisory Service, Class A deducts a sales charge up front at subscription but has a lower distribution fee rate, which favors long-term investment, while Class C has no sales charge but a higher distribution fee rate, which favors short-term investment. The FSS notes that the cumulative costs of the two classes usually become similar after about 2 years and advises considering the class that suits your expected investment period.