Public offering fund is a collective investment tool, in which some investors invest in a professional institution, and the professional institution manages the investment portfolio to obtain a higher rate of return. In the process of investing in Public Offering of Fund, investors need to bear certain expenses, the most important of which is the management fee. In this article, we will discuss this topic.
Definition of management fee
Management fee refers to the fees charged by Public Offering of Fund managers (fund companies) for managing investors' assets. Generally, it is calculated in an annualized way, usually according to a certain proportion of the fund's net asset value. The management rate has a great influence on investors' income, and it is one of the important factors that investors need to consider when choosing to invest in Public Offering of Fund.
Calculation method of management rate
The management fee is calculated on an annual basis, usually as a percentage of the fund's net asset value. The management fee of a fund company is comprehensively considered according to the fund type, investment strategy, fund scale, risk control and other factors. Generally speaking, the higher the management fee, the higher the income of fund companies, but the lower the income of investors. When choosing Public Offering of Fund, investors need to carefully compare the management rates of different fund companies and choose a lower management rate.
Influencing factors of management rate
The level of management fees mainly depends on the following factors:
Fund type: Different types of funds have different management fees. For example, the management rate of equity funds is generally higher, while the management rate of money market funds is lower.
Fund size: Generally speaking, the larger the fund size, the lower the management fee.
Investment strategy: Different investment strategies need different investment managers, and different investment strategies will also affect the management rate.
Risk control: fund companies need to control the risk of funds, which will also increase management costs.
Generally speaking, the management fee rate is one of the important factors that investors need to consider in Public Offering of Fund. When investors choose to invest in Public Offering of Fund, they should comprehensively consider the management rate of fund companies, fund types, fund scale, investment strategies and other factors, and choose the Public Offering of Fund that suits them, so as to obtain better investment returns.
1. Introduction of tonghua normal University Hailong Campus
School profile tonghua normal University Hailong Branch, formerly known as Hailong Nor