Reduced management fees
The custody fees and management fee rates of the Harvest CSI 300 Index Fund (LOF), which has relatively higher management costs, are the same as those of the Shanghai Stock Exchange 50 ETF Index Fund. This move This means that index funds will enter the era of low fees.
Index funds are divided into two types: index-enhanced funds and index-replicating funds. The investment cost of the former is higher. At present, among the 9 domestic index funds, most of them are enhanced index funds, except for the Shanghai Stock Exchange 50 ETF. The management fees of these 8 index funds are 0.98-1.3%, and the custody fees are 0.2-0.25%. Although the Harvest CSI 300 and SSE 50 ETFs under formation are both fully replicating index funds, the SSE 50 ETF is almost 100% passive investment, while the Harvest CSI 300 needs to invest in some government bond assets and has a larger number of stocks to choose from, so the management cost should be slightly lower. Higher than SSE 50ETF. Yang Yu, its proposed fund manager, said: The management fee of large foreign index funds is only 0.2%, and the fee of medium-sized non-enhanced index funds is generally 0.5%-0.6%. Harvest CSI 300 has determined that the 0.5% management fee is in line with international standards. of.
Industry insiders pointed out that compared with the management fees and custody fees of similar index funds on the market, investing in Harvest CSI 300 can save 0.6% in fees per year; compared with actively managed funds, investors pay 1.15 less per year. % or more management fees and custody fees.
Handling fee is waived
Bosera Stable Value Fund (Boshi No. 6) bond fund is free of charge. Like money market funds, investors do not need to pay subscription/subscription or redemption fees when subscribing/subscribing or redeeming Boshi Stable Value, and the investment cost is significantly lower than existing bond funds. The redemption amount will be withdrawn from the custody account by the fund custodian CCB on T+1. Guo Jun, the company's proposed fund manager, said that Boshi No. 6 does not invest in stocks and convertible bonds, and the fund performance benchmark is the after-tax interest rate of two-year time deposits (2.16%).
It is understood that in the first three days of the issuance of Bosera Stable Value, CCB’s sales in Shanghai exceeded 10 million. Analysts said that the income of bond funds is relatively stable. The current average subscription and redemption fees for the 12 bond funds in Shanghai and Shenzhen stock exchanges are about 1%, which erodes investors' profits. As the yield of money market funds declines, if investors want to invest in an intermediate product between bond funds and money market funds, Bosera Bond Fund deserves attention.
Low fee rates are a trend
Shanghai Fund Connect also helps fund investors reduce costs. To invest in open-end funds under existing channels, small and medium-sized investors need to open accounts for each fund and pay about 2% transaction costs. Using Shanghai Securities Fund Connect, investors only need to open a Shanghai securities account to buy and sell open-end funds, which is very convenient ; And the previous subscription and redemption fees may decrease.
Analysts believe that with the recent downturn in the fund issuance market and the intensified competition in the fund market, low fee rates will become a trend. However, the decline in fee rates has placed higher demands on fund size and fund management.