Investment funds should not only consider the rate of return and risk of the fund, but also understand the transaction cost of the fund. Fund transaction fees include subscription fees, redemption fees, management fees and custody fees. This article will introduce the collection of fund transaction fees in detail.

First, the subscription fee

The subscription fee refers to the fee that needs to be paid when the fund is raised, also known as the front-end fee. The subscription rate is generally between 0.5%- 1.5%, and different fund companies have different rates. For example, if you want to buy a fund, the subscription rate stipulated by the fund company is 1%, and you want to buy a fund of 10000 yuan, then you need to pay the subscription fee of 100 yuan.

Second, the redemption fee

Redemption fee refers to the fee that needs to be paid when redeeming the fund, also known as back-end fee. The redemption rate is generally between 0.5%- 1.5%, and different fund companies have different rates. For example, if you want to redeem a fund, the redemption rate stipulated by the fund company is 1%, and you want to redeem a fund of 10000 yuan, then you need to pay a redemption fee of 100 yuan.

It should be noted that some fund companies stipulate that if they hold the fund for more than a certain period of time, they do not need to pay the redemption fee when redeeming the fund. This period is generally one year, but some fund companies stipulate two or three years.

Third, management fees.

Management fee refers to the fee charged by the fund management company for managing the fund. Management fees are generally between 0.5% and 2%, and different fund companies have different rates. For example, if the management fee of a fund is 1% and the net asset value of the fund is 1 100 million yuan, then the fund needs to pay the management fee of 1 100 million yuan every year.

Four. trustee fee

Custody fee refers to the fee charged by the fund custodian for keeping the fund. Custody rates are generally between 0. 1%-0.3%, and different fund companies have different rates. For example, if the custodian fee rate of a fund is 0.2% and the net asset value of the fund is 654.38 billion yuan, then the fund needs to pay a custodian fee of 200,000 yuan every year.

It should be noted that the subscription fee, redemption fee, management fee and custody fee charged by the fund company will affect the fund's rate of return. Therefore, when choosing a fund, we should not only consider the rate of return and risk of the fund, but also consider the transaction cost of the fund. At the same time, we should also pay attention to comparing the expense rates of different fund companies in order to choose the right fund.

In a word, the transaction cost of funds is one of the important factors to be considered in investment funds. Understanding the collection of fund transaction fees can help us choose funds better and get better return on investment.