This is the "hidden cost" of funds. These expenses are directly deducted from the fund assets, and the net value of the fund we see every day has been deducted.
What are these expenses? Let's reveal the secrets one by one.
1. Management fee
Management fee is the remuneration paid to fund managers, that is, the fees charged by fund companies to help investors manage funds.
Management fees are accrued daily from the net asset value of the fund according to a certain proportion, which is the main source of income for fund managers.
The management rate is directly proportional to the fund risk. The management fee of the Monetary Fund is the lowest, generally between 0. 15%-0.33% per year. The management rate of bond funds and passive index funds is basically between 0.3% and 0.6%, while the management rate of active stock funds is the highest, which is basically 1.5%.
2. Custody fee
The fund custody fee refers to the fee charged by the fund custodian to the fund for keeping and disposing of the fund assets.
For example, the fees drawn by banks for the custody and disposal of fund property. This part of the fee is the fee charged by the fund company and handed over to the custodian bank.
The proportion of custody fees is related to the fund size and fund type. The larger the fund scale, the lower the fund custody fee rate.
At present, China's stock-based closed-end funds charge fund custody fees according to the proportion of 0.25%, and open-end funds charge funds according to the proportion agreed in the fund contract, which will not exceed 0.25%. The custody rate of stock funds is usually higher than that of bond funds and monetary funds.
3. Sales service fee
The sales service fee is used to pay the marketing expenses of the sales organization. Generally, money funds and C-share funds that do not charge subscription fees will have sales service fees.
Because of the sales service fee, the net value and income of A and C shares of the same fund will be different.
Source: wind
4. Other operating expenses
Other operating expenses of the Fund include audit fees, attorney fees, annual listing fees, information disclosure fees, dividend handling fees, account opening fees and bank transfer fees. These are considered to be the operating costs of funds, but they are generally not disclosed because they do not happen frequently and account for a relatively small proportion.
Generally speaking, transaction costs such as subscription fees, subscription fees, redemption fees, etc. are all one-time expenses, which are paid in one lump sum when buying and selling.
However, the fund operation fee is a continuous fee, which will be generated every day, and will be withdrawn from the fund assets according to a certain proportion every day, but it is not reflected in the fund net value. If these hidden costs are high, it will consume some fund performance.
Therefore, when selecting similar funds with similar performance, the lower the operating cost, the better, so as to obtain higher returns.
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Investment consultant: Ke Cheng Investment Co., Ltd.: S0590622070002 Fund employee: F49900000011.
Jin also contributed to this paper: S0590 122080089?