Fund, broadly speaking, refers to a certain amount of funds set up for a certain purpose. It mainly includes trust and investment funds, provident funds, insurance funds, retirement funds and funds of various foundations. From the accounting point of view, capital is a narrow concept, which refers to funds with specific purposes and uses. The fund we are talking about mainly refers to the securities investment fund. The income from fund investment comes from the future. For example, if you want to redeem stock funds, you can first look at whether the future development of the stock market is a bull market or a bear market. Then decide whether to redeem or not, and make a choice on the timing. If it is a bull market, it can be held for a period of time to maximize the benefits. If it is a bear market, redeem it in advance and put it in the bag. Converting high-risk fund products into low-risk fund products is also a kind of redemption, such as converting stock funds into money funds. This can reduce the cost, the conversion fee is generally lower than the redemption fee, while the money fund has low risk, equivalent to cash, and the income is higher than the current interest. Therefore, conversion is also an idea of redemption. Like regular investment, regular fixed redemption can do daily cash management and stabilize market fluctuations. Fixed-term redemption is a redemption method of fixed-term investment.
The management fee is related to the fund size, generally speaking. The larger the fund scale, the lower the fund management fee rate. But at the same time, the fund management fee rate is also related to the fund category and different countries or regions. Generally speaking, the higher the fund risk, the higher the fund management fee rate, among which the fund with the highest rate is the securities derivative fund, such as the annual rate of the warrant fund is 1.5%-2.5%. The lowest is the money market fund with an annualized rate of only 0.5%- 1%. The annual management fees of other funds announced by the Hong Kong Fund Association are: 0.5%- 1.5% for bond funds and 0/%-2% for equity funds. In developed countries and regions such as the United States, the annual management fee of the fund is usually around 1%. However, in some developing countries or regions, the proportion is higher. For example, the annual fund management fee rate in Taiwan Province Province is generally 1.5%, and the annual fund management fee rate in some developing countries even exceeds 3%.