I. Definition and Function of Rate
Rate refers to the fees charged by fund companies for managing funds, which is very important to fund companies and investors. Fund companies get the income of funds through the rate, and fund investors will also pay attention to the rate of funds when choosing funds.
Fund rates are mainly divided into buying rates and management rates. The buying rate refers to the fees that need to be paid when buying a fund, which is often called "front-end fee". Management fee is the fee that fund companies need to charge in the process of managing funds.
Second, the types of rates.
Fund purchase rates are mainly divided into front-end charges and back-end charges. Front-end expenses refer to the expenses incurred when purchasing funds, also known as subscription fees, which are generally reflected in the net value of funds. Back-end fees refer to the fees that need to be paid when the fund is redeemed after a certain period of time, also known as redemption fees.
In addition, there is a special fund purchase rate-the fund free of subscription fee. As the name implies, a fund without subscription fee refers to a fund without front-end fees, and investors only need to pay management fees. Funds without subscription fees are welcomed by investors, however, their management fees are relatively high.
Third, the factors affecting the subscription rate of funds
The level of fund purchase rate is not the only measure. Investors should also consider other factors when choosing a fund, including:
(1) Historical performance of the fund
The historical performance of the fund is one of the key factors to evaluate the fund, which can reflect the investment style, management ability and operational potential of the fund. Investors need to carefully study the historical performance of a fund, comprehensively consider the risks and benefits of the fund, and then decide whether to buy.
(2) The strength and credibility of the fund company
The strength and reputation of a fund company is also one of the important factors to measure a fund. Investors should choose to buy funds issued by well-known fund companies with excellent performance and rich experience, which will have more advantages in risk prevention and investment income.
(3) Investors' own risk tolerance
Investors' own risk tolerance is also one of the important factors that affect the purchase of funds. According to your own situation, invest in a suitable risk range, and try to avoid blindly following the trend or exceeding your tolerance.