In recent years, more and more investors have begun to pay attention to funds, especially under the concept of financial development, many novice investors are very interested in this product with less risk fluctuation than stocks. However, there are often various handling fees in fund transactions, such as the familiar subscription fees and redemption fees, which are mainly deducted when buying and selling. In addition, there is also the collection of fund operating fees, which many novice investors do not understand. Today, we will explain it in detail.

What are the operating expenses of the fund?

Fund operating expenses refer to the expenses that should be borne by the fund to ensure the normal operation of the fund.

The operating expenses of the fund, as the name implies, refer to the expenses that need to be borne by the fund assets in order to ensure the normal operation of the fund. The operating expenses of the fund mainly include four categories, and the following are specific introductions.

Custody fee 1: In order to ensure the safety of our funds and prevent fund companies from misappropriating these funds, the funds invested by our fund will be kept by a third-party custodian. The custody of funds not only needs to bear risks, but also costs such as manpower and material resources, so a certain custody fee will be deducted from it.

Custody fees are collected by fund custodians such as commercial banks and securities companies, and will be deducted according to a certain proportion of the net asset value of the fund.

Management fee: Because we don't know much about stocks, bonds or other investment products, our investment funds actually give money to professional institutions and professionals to help us invest. Then the fund companies and fund managers who help us manage the funds must pay, and the management fee is the reward for them.

Management fees are collected by fund managers, which are divided into two ways: fixed and floating, and different types of funds have different proportions.

3 Sales service fee: In fact, we seldom buy funds directly through fund companies. Because there are many fund companies, and they only sell our products, if you want materials and there are many fund products, you need to buy them through some consignment platforms, such as Tian Tian Fund and Alipay, which we are familiar with. These sales platforms also have certain development, manpower and maintenance costs, so they generally charge a certain fee, but not all funds will charge sales service fees. We can check the details of the fee.

In fact, there are other operating expenses, such as audit fees, attorney fees, information disclosure fees, dividend handling fees, etc. It is also the operating cost of the fund, but it is not disclosed because it does not happen frequently and accounts for a relatively small proportion.