Haifutong Financial Management Tips: A common practice in the international asset management industry is to differentiate between accruing expenses through a hierarchical system.

Many domestic stock-type open-end funds are also divided into several levels according to the subscription (subscription) amount. The higher the amount, the subscription (subscription) rate is also preferential.

Since monetary funds do not charge subscription fees, regardless of the size of the investment, a sales service fee is accrued at a uniform annual rate (0.25%) to compensate for the service costs of account establishment and maintenance of the payment sales agency.

Therefore, for investors with larger subscription amounts, lower sales and service rates will apply. In order to differentiate valuations, there are A and B classifications of money funds.

Domestic money funds currently divide money funds into A and B levels according to the different fund shares reserved in each account. Taking Haifutong Money Fund as an example, the management fees and custody fees of A-level fund shares and B-level fund shares are

Similarly, A-class fund units accrue sales and service fees at an annual rate of 0.25%, and B-class fund units accrue sales and service fees at an annual rate of 0.01%.

There is not much difference in the A and B-level thresholds for monetary funds set by various domestic fund companies, but some companies classify them according to the subscription amount, and some automatically upgrade or downgrade according to the reserved monetary fund shares, for example

: When the sum of Class A fund shares retained by an investor in all sales agencies exceeds 5 million (including 5 million shares), the registration agency of the fund will automatically upgrade the Class A fund shares held by all sales agencies to B

level fund shares.

In the same way, when the minimum balance of the total B-class fund shares retained by investors in all sales agencies is 5 million shares (including 5 million shares), if the balance is less than 5 million shares, the fund's registration agency will automatically transfer it to all sales institutions.

The B-class fund shares held by the sales agency were downgraded to A-class fund shares.