1. China's "Pilot Measures for Securities Funds of Open-end Investment Funds" stipulates that open-end funds can charge subscription fees, but the subscription rate shall not exceed 5% of the subscription amount. At present, the subscription rate is usually around 1%, and there are corresponding discounts with the size of the subscription amount. In practice, there are two ways for open-end funds to collect subscription fees, one is called front-end fee, and the other is called back-end fee. Front-end charge refers to the payment method of subscription/subscription fee when subscribing and purchasing funds. Back-end charge refers to the payment method of not paying the subscription fee when buying an open-end fund and then paying it when selling it.

2. Back-end fees are designed to encourage you to hold funds for a long time. Therefore, the rate of back-end fees will generally decrease with the growth of funds you hold. Some funds even stipulate that if the fund can be sold after a certain period of time, the back-end fee can be completely exempted. Mind you, the back-end charge is different from the redemption fee. Back-end charges, like front-end charges, are all a kind of subscription fees, but they are not paid when buying funds, but when selling funds.

3. Therefore, if you buy a fund with back-end charges, you must pay the subscription fee in the form of back-end charges in addition to the redemption fee when you sell the fund. If the front-end and back-end rates are the same, you can consider back-end charges. The reasons are as follows: when choosing the back-end fees, investors can buy more shares of the original fund, and when the final income is good, this part of the income can offset the increase in fees caused by some value growth; When the income is poor or even at a loss, you can save some expenses.