The biggest benefit QDII brings to investors is global vision and global investment platform, that is, looking for opportunities in the global market rather than being limited to a single market. Through QDII channel, investors can buy stocks of high-quality enterprises other than A shares. However, the risk in overseas markets is not as low as some investors think, and it needs to be dispersed through decentralized allocation.
Take QDII fund as an example, its subscription rate is the sum of management rate and custody rate ~, but the highest subscription rate of A-share fund is the sum of management rate and custody rate, which is generally explained by Chen Zongxi, director of international business of Huitianfu Fund Company. The operating cost of QDII funds is indeed higher than that of A-share funds. On the one hand, it is the consulting fee of overseas investment consultants, on the other hand, it is the investment used for overseas market research. Moreover, after the investment target is expanded to the whole world, the transaction cost of other countries' stock markets is relatively high, while the transaction cost of A-share market is relatively low in the whole world. Overall, the rate of QDII funds is not high. In Taiwan Province Province, China, where QDII was earlier, the charging standard was similar.
Redemption time of QDII fund
In fact, QDII funds will announce their net value every day after the closed period, but only on T+2. The time for redemption funds to arrive in the account is generally 10 days.
Chen Zongxi said that investors need to understand this because QDII products invest in the global market. Due to the different transaction time caused by the time difference and the different currencies caused by different regions, the daily asset settlement and net value calculation are slower than those in a single market, so the net value is basically announced across working days.
However, like A-share funds, investors purchase or redeem funds at the price of T day (within the effective purchase/redemption time) under the principle of "unknown price". It takes a long time for redemption funds to arrive in the account for the same reason. However, with the improvement of process and settlement assistance technology, it is expected that the future time will be gradually shortened to less than one week.