2. In practice, there are two ways for open-end funds to collect subscription fees, one is called front-end fee and the other is called back-end fee. Front-end charge refers to the payment method of subscription/subscription fee when subscribing and purchasing funds.
3. Reasons for different front-end and back-end charges: The back-end charges are to encourage you to hold funds for a long time. Therefore, the rate of back-end charges will generally decrease as you hold funds for a long time. Some funds even stipulate that if the fund can be sold after a certain period of time, the back-end fee can be completely exempted. Mind you, the back-end charge is different from the redemption fee. Back-end charges, like front-end charges, are all a kind of subscription fees, but they are not paid when buying funds, but when selling funds. Therefore, if you buy a fund with back-end charges, you must pay the subscription fee in the form of back-end charges in addition to the redemption fee when you sell the fund.