Management fee. The purpose of the fund is to raise investors' money and give it to professional institutions (fund companies) and people (fund managers) to help us manage the money. It is very hard to spend the most valuable money, so it is normal to collect some hard money, which is hard money or management fee.

Custody fee, all the money we raise is put in the custody institution to prevent fund companies from misappropriating it. Custody needs to take risks, and the staff needs to be responsible for docking fund companies, so we also need to charge some hard fees. This hard fee is the custody fee.

Classification of funds:

Main classification criteria:

First, carry out primary classification, and then carry out secondary or tertiary classification according to the situation. The first-level classification is based on the Measures for the Operation and Management of Securities Investment Funds promulgated and implemented by the CSRC on July/KLOC-0, 2004. Article 29 of the Measures stipulates that fund contracts and fund prospectuses shall specify the types of funds in accordance with the following provisions:

(1) More than 80% of the fund assets are invested in stocks, which are stock funds;

(2) More than 80% of the fund assets are invested in bonds, which are bond funds;

(3) Money market funds that only invest in money market instruments;

(four) investment in stocks, bonds and money market instruments, the proportion of stock investment and bond investment does not meet the provisions of items (a) and (b), for the mixed fund;

(5) Other fund categories as stipulated by the China Securities Regulatory Commission.

Secondary classification standard

Equity fund: a fund that mainly invests in stocks, and more than 60% of its assets are invested in stocks.

Index fund: a fund that mainly invests in index stocks.

Partial stock fund: stock investment is the main investment, and the median allocation ratio of stock investment is greater than that of bond assets.

Stock-bond balanced fund: the allocation ratio of stock assets and bond assets can be flexibly allocated according to market conditions, and the difference between the median allocation ratio of stock investment and the median allocation ratio of bond assets is generally less than 5%.

Partial debt fund: bond investment is the main investment, and the median allocation ratio of bond investment is greater than stock assets.

Bond funds: including two types of funds. One is a pure bond fund that does not invest in stocks, and the other is a fund that only subscribes for new shares but does not actively invest in stocks.

Capital preservation fund: a fund that guarantees that investors can get at least all or part of the investment principal when the investment expires, or promises a certain percentage of return.

Money fund: a fund that mainly invests in money market instruments.