After the investor sells the fund, the actual amount obtained is the total redemption amount MINUS the redemption fee. The calculation formula is:

Total redemption amount = number of redemption shares × net value of fund shares on redemption date? ( 1)

Redemption cost = total redemption amount × redemption rate (2)

Redemption amount = total redemption amount-redemption fee (3)

Investors should pay attention to the fact that the redemption fee income stipulated by each fund may be different. Some regulations only deduct a small part of the handling fee, most of which will be owned by the fund; Some regulations treat all or most of them as handling fees, but not only a small part of them as fund assets, so that if you partially redeem them, the former will be more beneficial to you, and under the same circumstances, the net value of the fund shares you hold will be higher than the latter.

Move the total redemption amount in formula (2) to the left of the formula, and you will get:

Redemption Rate = Redemption Fee/Redemption Total (4)

It can be seen from Formula (4) that the redemption rate is the ratio of the redemption fee to the total redemption amount.

If the numerator and denominator of Formula (4) are multiplied by 100, Formula (4) becomes:

Redemption rate = redemption fee/total redemption amount × 100% (5)

As can be seen from Formula (5), the redemption rate is the proportion of redemption expenses to the total redemption amount.

Extended data:

Redemption:

Redemption refers to the trading behavior that investors sell their fund shares to the fund company to obtain cash during the existence of the fund.

Usually redemption adopts share redemption. The so-called share redemption means that when investors sell fund shares, they apply to the fund company for redemption according to the number of redeemed fund shares, not according to the amount sold.

Redemption fee:

Redemption fee, referred to as redemption fee, refers to the handling fee that investors need to pay to fund companies when selling fund shares.

Redemption rate:

Fund redemption rate refers to the proportion of expenses paid by investors when they sell their fund shares. The fund redemption rate is determined by the fund manager, and different securities companies have different regulations; For example, some companies have introduced a charging method that the redemption fee decreases with the increase of holding time, that is, the longer the fund is held, the less the redemption fee will be paid when it is redeemed, and the redemption fee will not be charged when it is held for a certain period of time.

References:

Fund redemption rate-Baidu Encyclopedia