Generally speaking, most funds now charge some fees for subscription or redemption. Except for money funds, which do not need subscription fees and redemption fees, most other types of funds charge handling fees. So is the handling fee of the fund very important? The following small series will answer your question.
Is the handling fee of the fund very important?
The handling fee of the fund is the fee that investors need to pay when buying and holding the fund. For investors, handling fees are very important.
What expenses should I remember when buying a fund?
Front-end fee: also known as subscription fee or front-end fee, it is the fee paid to the sales organization when purchasing the fund. This fee is usually calculated according to a certain proportion (such as 1%~5%), which reduces the subscription funds of investors.
Back-endLoad: also known as redemption fee or back-end fee, it is the fee paid to the fund company when redeeming the fund share. The redemption fee usually decreases gradually according to the holding time, and long-term holders can enjoy lower rates or free redemption.
Management fee: the fee charged by the fund company for managing and operating the fund. Usually, it is calculated according to a certain proportion of the fund assets (such as 0.5%~2%), which is deducted from the fund assets every year, which directly affects the income of investors.
Custody fee: the fee paid by the fund company to the custodian bank for the custody of the fund assets, which will also be deducted indirectly from the fund assets, and investors will not pay directly.
TransactionFee: the fee paid to the sales organization or brokerage firm when purchasing and redeeming the fund shares, which is usually manifested as a one-time transaction fee, which will reduce the actual investment or return of investors.
Performance fee: Some foundations charge extra performance fee according to the performance of the fund. When the fund's performance reaches or exceeds a predetermined index, investors need to pay extra fees, which are expressed as a certain proportion of the fund's assets.
What fund is free for 7 days?
According to the relevant regulations of Public Offering of Fund, if the fund is redeemed within 7 days, a part of the handling fee will be charged. This 7-day holding refers to the time for trading on natural trading days, including weekends. So most funds need to charge fees.
For example, if you buy a fund before three o'clock on Monday and sell it before three o'clock next Monday, it is exactly seven days, and there is no need to charge a handling fee.
But some funds are free for seven days, such as money funds, which generally have no subscription fee and redemption fee. Moreover, the risk of buying a money fund is small, and it can basically guarantee that the principal will not be lost, which is a stable income type.
Secondly, there are a few bond funds that don't charge subscription fees. Generally, they don't charge fees after 30 days, and some companies charge fees after 7 days. Therefore, before buying a fund, you should plan your own financial planning reasonably. Investment is risky and financial management needs to be cautious.
Generally speaking, money funds are generally purchased for free within 7 days. Secondly, the free 7 days are calculated from the time when the fund share is confirmed, including holidays and working days. The fund confirmation date refers to T+ 1, and t refers to the trading day. The trading day is the opening time of the stock, that is, Monday to Friday (except holidays). If the fund purchases on a non-trading day, then the trading day will be counted as T. ..
What does the seven-day annualized rate of return of the money fund mean?
The seven-day annualized rate of return of the money fund is a reflection of the rate of return of the money fund, and the average rate of return of the money fund in the last seven days is calculated. Because most products have expected annual income, it is convenient for investors to compare the income of wealth management products by converting daily income into annual income. Its calculation method is: annualized rate of return = [(investment income/principal)/investment days ]×365× 100%.
The 7-day annualized income of the money fund is constantly changing with time, so the income of the money fund fluctuates every day, and investors can only use it as a reference index for short-term investment. Because the liquidity of the money fund is very strong, investors can pay attention to its seven-day annualized rate of return, buy the money fund when the value is high, and redeem it after the rate of return drops. The high liquidity of the money fund is very suitable for investors to put in temporarily idle funds.
Is the seven-day annualized rate of return of the money fund as high as possible?
Generally speaking, the higher the seven-day annualized rate of return of the money fund, the better, because the higher the annualized rate of return, the stronger the short-term profitability of the money fund.
For example, the 7-day annualized rate of return of Monetary Fund A is 2%, and investors deposit 1 10,000 yuan, so the income that can be obtained from 1 day is 1 10,000 × 2%/365 = 0.55 yuan; After the annualized rate of return of the Monetary Fund rose to 2.4% on the 7th, investors could get 10000×2.4%/365=0.66 yuan, and the income they could get increased.
However, the 7-day annualized income of the money fund fluctuates, and it takes T+ 1 day to calculate the income after the money fund subscribes, so it is difficult for investors to accurately subscribe for the fund with the highest yield. Investors can choose a relatively high and less volatile fund according to the historical seven-day annualized rate of return of the money fund.