Calculation formula of back-end subscription fee:

Back-end subscription fee = redeemed subscription share × net fund value on the subscription date × back-end subscription rate.

the formula of redemption fee for another fee is: (the redemption fee is .5%)

redemption fee = redemption share × net fund value on the redemption date × redemption rate.

suppose you subscribe for a fund of 1, yuan, and its net value is 1 yuan on the subscription date. In less than two years, when the net value reaches 1.1 yuan, you will redeem it all. Then it can be divided into three situations to discuss:

First, the fund has never been distributed dividends during the period;

Second, after paying dividends (assuming that 1% of the proceeds are completely lost, the same below), you choose the cash method, and the net value at the time of redemption is still 1 yuan;

Third, you decide to invest in dividends, and the net value at the time of redemption is also 1 yuan.

the back-end charging mode (assuming the back-end subscription rate is 1.5%)

the fees to be paid are: back-end subscription fee+redemption fee (collected together at the time of redemption)

1,× 1× 1.5%+1,× 1.1× .5% = 1,5+55 = 2,5 yuan.

1,× 1× 1.5%+1,× 1× .5% = 1,5+5 = 2, yuan;

1,× 1× 1.5%+1,× 1.1× 1× .5% = 1,5+55 = 2,5 yuan.

(Note: dividend reinvested shares are exempt from subscription fee)

Front-end charging mode (assuming front-end subscription fee is 1.5%)

The fees to be paid are: front-end subscription fee+redemption fee (front-end subscription fee is charged at the time of subscription and redemption fee is charged at the time of redemption)

1,× 1× 1.5%/(1+1).

1× 1× 1.5%/(1+1.5%)+98522.17× 1× .5% = 1477.83+492.61 = 197.44 yuan;

1,× 1× 1.5%/(1+1.5%)+98,522.17× 1.1× 1× .5% = 1,477.83+541.87 = 219.7 yuan.

from the above calculation, it can be found that if investors need to redeem the fund in a short time, then the cash dividend and the front-end charge cost are the lowest, and the back-end charge is the highest. The difference between the two fees per 1, yuan is 25-197.44=79.56 yuan. If investors redeem in less than one year, the back-end subscription fee will be higher, because the rate will be 1.8%.