Front-end subscription fee = subscription amount-subscription amount /( 1+ subscription rate)
Back-end subscription fee = subscription amount × corresponding rate
Front-end charge refers to the way investors pay subscription fees when buying open-end funds. The front-end subscription rate generally decreases with the increase of subscription amount. Simply put, the more you buy, the lower the cost, and the larger the quantity, the better.
Back-end charge refers to the payment method that investors do not pay the subscription fee when they buy open-end funds and wait until they sell them. Generally, the rate of back-end fees will decrease with the increase of holding time, that is, the longer the holding time, the lower the rate until it is zero. Long-term holding is more conducive to the investment management of fund managers, so the longer the holding time, the lower the cost as compensation.