What do you usually need to invest in Public Offering of Fund?
Public offering funds usually have subscription or subscription fees, redemption fees, management fees, custody fees, etc. Commission and other expenses should also be considered in on-site transactions.
As for subscription or subscription fees, they are all the expenses that investors need when they invest money to obtain fund shares. Among them, the subscription fee is charged when the fund has not yet entered the closed period, and the subscription fee is charged during the existence of the fund, that is, when it is officially operated.
The redemption fee refers to the fee that the fund holder of an investment fund needs to pay when he sells his fund share back to the fund manager, that is, the fund company. In order to prevent fund holders from buying and selling funds frequently, under normal circumstances, the longer the fund holding period, the lower the redemption fee or even cancel it.
The management fee is the fee that investors need to pay to the fund manager to manage the fund assets. Similarly, the custody fee is the fee paid to the custodian for keeping the fund assets. The fund manager here is responsible for managing the fund for investment, and this large sum of money of the fund is kept by the custodian. The custodian is a bank, which is redundant because, on the one hand, the safety of funds needs to be guaranteed, and on the other hand, institutions other than banking financial institutions cannot conduct deposit business operations.
Do you need to pay all these expenses?
Although investment funds have various fees to pay, not all of them have to be paid. For example, money funds do not need to pay subscription fees, and like most funds, they can be exempted from redemption fees as long as they are held for a certain period of time.
Each fund must pay management fees and custody fees, of which the custody fees will be paid by the fund manager to the custodian, but will be charged to investors. Different types of funds have different management fees. Take the money fund as an example, its management fee will be higher than other funds that charge subscription fees.