Refers to the fees that investors need to pay when buying or redeeming money funds. As an investment tool, money fund is very popular in short-term financial management and capital storage because of its low risk of maintaining and increasing value. Investors need to pay a certain fee when buying or redeeming money funds, which has a certain impact on investors' investment income.
Let's look at the types. It mainly includes subscription fee and redemption fee. Subscription fee refers to the fee that investors need to pay when they buy money funds, which is usually charged according to a certain proportion, such as 0. 1%~ 1%. Redemption fee refers to the fee that investors need to pay when redeeming money funds, which is usually charged according to a certain proportion, such as 0.5%~ 1.5%. There are other expenses such as management fees and custody fees, but these expenses are usually borne by the fund company and will not directly affect the income of investors.
Let's look at the impact on investors. For investors, it will reduce their investment income to a certain extent. Take the subscription fee as an example. If an investor needs to pay a subscription fee of 1% when buying a money fund, then he can actually only buy 99% of the shares, which means that his actual investment income will be slightly lower than the theoretical income. Similarly, redemption fees will also have a certain impact on investors' income. Investors should not only consider the factors such as rate of return and risk, but also consider the impact of handling fees on investment income when choosing on-site monetary funds.
Let's take a look at how to reduce the impact on investors. Investors can choose money funds with lower costs to invest. Different fund companies and different monetary funds may have different subscription fees and redemption fees. Investors can choose the right money fund according to their own needs and investment plans. Investors can reduce the impact of handling fees on investment income by holding money funds for a long time. If investors frequently purchase and redeem money funds, the handling fee will have a great impact on their investment income, and investors can reduce the impact of handling fees by holding money funds for a long time.
It is the cost that investors need to pay when buying and redeeming money funds, which has a certain impact on investors' investment income. When investors choose to invest in monetary funds, they should comprehensively consider the income and risk of monetary funds and the influence of handling fees on investment income, and choose appropriate monetary funds to invest. At the same time, investors can also reduce the impact of handling fees on investment income by choosing money funds with lower handling fees and holding them for a long time.