Generally, the purchase of private equity funds will generate the following expenses: subscription and subscription fees (generally 1%) will be charged for the purchase of private equity funds (some private equity funds will not be charged); This is an extra charge. That is, to subscribe for 1 10,000 yuan, investors need to pay 1 0/10,000 yuan, and the extra110,000 yuan is the subscription fee. Of course, some products have no subscription fee.
The redemption fee is charged during the closing period, but not during the development redemption period; However, it should be specially reminded that the liquidity of private equity funds is far less than that of Public Offering of Fund, so it is not suitable for investors with high liquidity requirements. Most private equity funds have a closed period of at least 6 months, during which redemption is not allowed, or redemption requires a higher rate of about 3%.
If it cannot be redeemed within 6 months after subscription, the transition period is from 6 months after subscription to 1 year, and the redemption rate is 3%. 1 year There is no redemption fee after the closure period. In addition, after the closure period, private equity funds can't be redeemed every day, and they need to go through redemption procedures on the designated redemption date, usually once a week, twice a week or once a month.
In addition to the subscription fee, there are two other fees-fixed management fee and custody fee, and floating management fee. The former is generally between 1.5%-2%, while the latter's private products are basically around 20%.
Floating management fee is commonly known as performance commission. When private equity funds generate profits, private equity fund managers will extract 20% of the profits as a return. This excess performance fee can only be withdrawn after the private equity fund hits a new high every time.
The charging standard of private equity fund management fee is arranged as follows:
Private placement fund subscription fee
Private equity fund 1% subscription fee. According to the provisions of the trust contract, when investors subscribe for products, they need to pay a certain proportion of the trust fund subscription fee. The income, payment object and purpose of subscription fee shall be determined by the trust company. If the minimum subscription limit of private equity fund is 3 million yuan and the subscription rate is 1%, the initial amount of investors' actual subscription is 3.03 million yuan.
Trust company fee
The management fee of trust companies accounts for about 1% of private placement products. Generally divided into two parts. Part of it is a fixed trust reward (the general annual fee ranges from 0.75% to 1.25%, mostly 1%), which will be collected every month regardless of the operating performance of the fund. The other part is the floating trust reward (3% of the asset appreciation part). Only when the net value of the fund reaches a new high will a certain percentage of income be charged for the newly added part, which is also charged on a monthly basis.
Fee of custodian bank
The funds of private equity funds are generally deposited in custodian banks, and at this time, custodian banks need to charge fees. The rate standard is generally 0.25% per year. Regardless of the performance of the fund, this fee will be charged according to the asset size on the open day of each month.
Private equity fund management company
Private fund management companies are managers who actually operate private fund products, so they need to pay management fees. As an investment consultant of trust products, the fee charged is similar to that of trust companies, and it is also divided into two parts. Part of it is the management fee of fixed investment consultant, and part is the income of specific trust plan that may be collected. The standard of investment consultant management fee is 0 per year.
0.75%, mostly 0.25%, is also charged monthly.
Based on the above four expense standards, the overall handling fee and management fee for purchasing a Sunshine Private Equity Fund may be higher than 3%. Then, for investors, regardless of the performance of the fund's net value, the net value of products needs to increase by more than 3% ~ 3.25% within 1 year, and investors will have income. This is not a small management fee, and it is really not a product that diaosi can afford.