1. Front-end charge: The front-end charge is to facilitate the collection of fund fees.
2. Back-end charges: Encourage people to hold funds for a long time.
Second, the way is different.
1. Front-end charge: the payment method that the subscription fee is not paid when the open-end fund is purchased, but paid when it is sold.
2. Back-end charges: the payment method of paying subscription fees when purchasing open-end funds.
Third, the characteristics are different.
1. Front-end charging: The front-end charging mode can meet the different needs and preferences of investors in design, and fund investors can choose to buy their own funds according to their own financial situation.
2. Back-end charging: The back-end charging mode can reduce the investment cost of investors and improve the return on investment. In the case of the same investment amount, the share of funds obtained by the back-end charging model is higher than that of the front-end charging model. With the increase of fund share net value and dividend, the higher the share, the higher the income.
Baidu encyclopedia-? Front-end cost
Baidu Encyclopedia-Back-end Charge