The way investors buy and sell open-end funds is quite different from closed-end funds. Closed-end funds are bought and sold through the securities exchange, and the buying and selling behavior takes place among fund investors, while open-end funds are not listed on the exchange, so investors must apply to the fund manager for purchasing or redeeming the funds. The specific procedures for investors to buy and sell open-end funds are as follows:

Read relevant legal documents

Before buying a fund, investors need to carefully read the prospectus, fund contract, account opening procedures and trading rules of the fund, carefully understand the important information about the investment direction, investment strategy, investment objectives, fund manager's performance, account opening conditions and specific trading rules of the fund, and make an overall assessment of the risk and income level of the fund to be purchased, and make an investment decision accordingly. According to the regulations, all fund sales outlets should have the above documents for investors to consult at any time.

opening a fund account

investors must first open a fund account when buying and selling open-end funds. According to the regulations, the conditions and specific procedures for opening a fund account need to be clarified in the relevant sales documents. The above documents will be placed in the fund sales outlets for investors to consult when opening a fund account.

buying funds

the process of investors buying fund units during the raising period of open-end funds and before the funds are established is called subscription. Usually, the subscription price is the face value of the fund unit (1 yuan) plus certain sales expenses. Investors who subscribe for funds shall fill in the subscription application form at the fund sales point and pay the subscription money. The registration authority shall go through the relevant formalities and confirm the subscription.

after the establishment of the fund, the process of investors applying to purchase fund units from the fund management company through the sales organization is called subscription.

when investors apply for funds, they should usually fill in the application form and pay the subscription money. Once the amount is paid, the application for subscription is valid. The specific subscription procedures will be detailed in the relevant fund sales documents. The number of subscription fund units is calculated on the basis of the net asset value of the fund units on the subscription date. The specific calculation method must meet the requirements of the relevant regulations of the regulatory authorities and be specified in the fund sales documents.

Selling funds

Contrary to buying funds, investors sell funds by selling their fund units to fund managers at a certain price and recovering cash. This process is called redemption. The redemption amount is calculated on the basis of the net asset value of the unit fund on that day.

when investors redeem funds, they should usually fill in the redemption application form at the fund sales point. According to the provisions of the Pilot Measures for Open-ended Securities Investment Funds, the fund manager shall confirm the validity of the transaction within 3 working days from the date of receiving the application for redemption from fund investors, and shall pay the redemption money within 7 working days from the date of accepting the application for effective redemption from fund investors.

In addition, for open-end funds, investors can not only buy and sell fund units, but also apply for fund conversion, non-transaction transfer and dividend reinvestment.

fund conversion means that when a fund management company manages multiple open-end funds at the same time, fund investors can convert one fund they hold into another. That is, when investors sell a fund, they buy another fund managed by the fund management company. Usually, the fund conversion fee is very low, or even not charged.

Non-transactional transfer of funds refers to the transfer of ownership of fund units under non-transactional reasons such as inheritance, donation and bankruptcy payment. Non-transaction transfer also needs to be handled by the fund's sales organization.

dividend reinvestment means that when a fund pays dividends in cash, the fund holder directly uses the cash obtained from the dividends to purchase the fund and turns the dividends into holding fund units. For fund managers, there is no cash outflow from dividend reinvestment, so dividend reinvestment usually does not charge subscription fees.

1. What fees do investors need to pay for purchasing funds?

There will be some expenses in the process of fund sales and operation, which will be borne by fund investors in the end to pay for the services provided by fund managers, fund custodians, sales agencies and registration agencies. There are two main types of investor-related expenses involved in fund operation: (unmasking the mystery of risk minimization and profit maximization ...)

(1) expenses directly borne by fund investors

This expense refers to the one-time expenses paid by investors when they conduct fund transactions. For closed-end funds, it is the same as buying and selling stocks, paying a certain percentage of commission outside the price. For open-end funds, it mainly refers to subscription fee and redemption fee.

1. Subscription fee refers to the fee that investors need to pay for purchasing fund units, which is mainly used to pay sales expenses, advertising fees and other marketing expenses to fund sales institutions. It can be collected when the investor buys the fund unit, that is, the subscription fee is collected in advance, or it can be collected when the investor sells the fund unit, that is, the subscription fee is collected after, and its rate is generally decreasing according to the holding period.

2. Redemption fee: refers to the fee paid by the investor when selling the fund unit. The redemption fee is different from the subscription fee, which is a sales commission, while the redemption fee is a fee charged for redemption. The subscription fee income after collection is dominated by the fund management company, while the redemption fee income belongs to the fund.

(II) Fund operating expenses

Fund operating expenses refer to the expenses incurred during the operation of the fund, mainly including management fees, custody fees and other expenses, which are directly deducted from the fund assets. (All-round tracking of individual stocks will take off from here ...)

1. Fund management fee: The fund management fee is the remuneration paid to the fund manager, which is generally calculated and accumulated daily according to a certain proportion (annual rate) of the fund's net assets, extracted from the fund assets and paid regularly. Fund management fees are the main source of income for fund managers. Fund managers' own expenses cannot be amortized to funds or fund companies, nor can they be charged to investors. Daily management fee = net asset value of the fund on the calculation day × management rate ÷ days of the year.

2. fund custody fee: the fund custody fee refers to the fee charged by the fund custodian to the fund or fund company for providing custody services for the fund. Custody fees are usually extracted according to a certain proportion of the fund's net asset value, calculated and accumulated daily, and paid to the custodian regularly. Custody fee accrued daily = net asset value of the fund on the calculation day × custody rate ÷ days of the year.

3. Other expenses include registration fee, seat rental fee, securities trading commission, lawyer's fee, accountant's fee, information disclosure fee and holders' meeting fee.

Operating expenses are important costs in fund operation. Funds with different investment strategies have great differences in operating expenses. The above operating expenses and charging methods should be announced in the fund prospectus.

second, do you need to pay taxes for investing in open-end funds?

in general, investors in funds will be involved in three kinds of taxes: (1) income tax, which is levied on investors' dividends and capital gains. (2) Transaction tax, which is the tax that the fund needs to pay when trading. (3) Stamp duty, the tax payable on the relevant documents in the transaction. At present, China has not levied income tax on individual investors' fund dividends and capital gains, and the investment income obtained by institutional investors should be incorporated into the taxable income of enterprises and levied enterprise income tax. The investment object of the fund is the securities market, and the fund manager has paid various tax rates stipulated by the stock exchange when investing, so investors do not need to pay transaction tax when purchasing and redeeming open-end funds. For investors to buy and sell funds, stamp duty is temporarily exempted.

3. What is the face value and subscription price of the open-end fund?

the face value of open-end funds is generally RMB 1 yuan; The subscription price is the face value plus the subscription fee for the unit fund share.

4. What's the difference between subscription and subscription of open-end funds?

the process of investors buying fund units during the raising period of open-end funds and before the fund is established is called subscription. Investors who subscribe for the fund shall fill in the subscription application form at the fund sales point and pay the subscription money. The registration authority shall go through the relevant formalities and confirm the subscription.

after the establishment of an open-end fund, the process of investors applying to purchase fund units from a fund management company through a sales organization is called subscription.

5. how to calculate the subscription fee and subscription share of open-end funds?

The transaction price of closed-end funds is the known market price at the time of buying and selling, and its price is affected by the relationship between supply and demand; The subscription of open-end funds adopts the unknown price method, that is, the transaction price of the fund unit is the net asset value of the unit fund that has not been known at the time of the behavior (but can be calculated after the market closes on the same day and announced on the next trading day).

the calculation method of the subscription unit quantity share of an open-end fund is as follows:

subscription fee = subscription amount × subscription rate

subscription share = (subscription amount-subscription fee) ÷ net value of fund units on a day

if an investor invests 5, yuan to subscribe for an open-end fund, assuming that the subscription rate is 2%, the net value of fund units on that day is 1.1688 yuan. ×2.%=1, yuan

subscription share = (5,-1,) ÷ 1.1688 = 41,923.34 copies

VI. How to calculate the redemption fee and redemption amount of open-end funds?

the transaction price of closed-end funds is the known market price at the time of buying and selling; The redemption of open-end funds adopts the unknown price method, that is, the transaction price of the fund unit depends on the net asset value of the unit fund that has not been known at the time of redemption (but can be calculated after the market closes on the same day and announced on the next trading day).

the calculation method of redemption fund unit amount is as follows:

redemption fee = redemption share × net value of fund unit on t day × redemption rate

redemption amount = redemption share × net value of fund unit on t day-redemption fee

if an investor redeems 5, fund units, assuming the redemption rate is .5%, the net asset value of fund unit on that day is 1.1688 yuan, which is obtained. ×1.1688×.5%=292.2 yuan

Redemption amount =5,×1.1688-292.2=58,147.8 yuan

VII. How to calculate the unit net value of the fund?

the net value of each fund unit is equal to the balance of the total assets minus the total liabilities of the fund and then divided by the total number of unit shares of the fund.

8. When and where will the fund price be announced?

Open-end funds must publish the net asset value of the fund unit of the previous day on the second day of each open day. The fund management company will publish it in the information disclosure newspapers (china securities journal, shanghai securities news, Securities Times) and websites (www.see.com.cn of Shanghai Stock Exchange and www.cninfo.com.cn of Shenzhen Stock Exchange) designated by the China Securities Regulatory Commission within the specified time limit. In addition, many fund companies will set up a 24-hour telephone or fax inquiry service system and provide inquiry service on the company's website, so that investors can keep abreast of their investment status.

9. What are the main ways to make profits from investing in open-end funds?

Investing in open-end funds can make profits mainly in the following two ways:

1. Net value growth: The net value of fund units increases due to the appreciation of stocks or bonds invested by open-end funds or the acquisition of dividends, dividends and interest. After the net value of fund units rises, the net value difference obtained by investors when they sell the number of fund units is also the gross profit of investment. Deducting the gross profit from the subscription fee and redemption fee when buying a fund is the real investment income.

2. Dividend income: According to the national laws and regulations and the provisions of the fund contract, the Foundation regularly distributes the income. Dividends received by investors are also an integral part of profits.

1. how do the regulatory authorities supervise the securities investment funds?

In order to standardize the operation of securities investment funds, safeguard the interests of fund investors and ensure the sustained and healthy development of the fund industry, China Securities Regulatory Commission, as the competent authority of the industry, exercises strict supervision over securities investment funds. The main contents include:

1. Formulating laws and regulations. In November 1997, China Securities Regulatory Commission promulgated the Interim Measures for the Management of Securities Investment Funds, and successively formulated a series of supporting implementation guidelines, which strictly regulated the fund contract, custody agreement, prospectus, articles of association of the management company, information disclosure and management of employees, laying a good foundation for the healthy development of the fund industry. In October 23, the Fifth Session of the Tenth the National People's Congress Standing Committee (NPCSC) deliberated and passed the Law of the People's Republic of China on Securities Investment Funds, which came into effect on June 1, 24, and will make the fund industry in China develop more smoothly and orderly on the legal track.

2. Qualification examination. Strict qualification management shall be implemented for securities investment fund operating institutions, including qualification identification, annual qualification inspection, qualification verification and other contents, and the safety of fund investors' funds shall be ensured through the establishment of market access and exit mechanisms. At the same time, China Securities Regulatory Commission also conducted strict qualification examination and identification for fund practitioners. According to the regulations, fund managers, senior managers of fund custodians, fund managers and other personnel must pass special examinations and have qualifications before they can engage in fund management business. In addition, China Securities Regulatory Commission also requires fund management companies and fund custodians to provide their employees with continuous business training and professional ethics training.

3. Information disclosure supervision. Formulate a strict fund information disclosure system, clearly define the content and format of information disclosure, and require the fund to strictly fulfill the obligation of regular announcement and temporary announcement of major events. Among them, regular announcements include weekly, quarterly, interim and annual reports of fund net worth; When something that may have a significant impact on the interests of fund investors occurs, the relevant fund managers and custodians shall also make a temporary announcement. At present, China's fund information disclosure system has been basically in line with international practice. (exclusive securities reference, looking at the stock market from a new perspective ...)

4. On-site and off-site inspection. Conduct on-site and off-site inspections on fund managers regularly and irregularly, comprehensively and dynamically grasp the actual situation of fund operation, promptly punish and expose illegal activities in fund operation, and take timely measures for problems found in supervision, so as to standardize fund operation and protect investors' rights and interests.

5. urge the fund manager to establish and improve the internal control system. By formulating a series of measures, the establishment and improvement of the internal control system of fund management companies are standardized. It mainly includes: requiring fund managers and their shareholders to be strictly independent in personnel, assets and operation; Strictly limit the scope of application of fund managers' own funds; Require fund managers to formulate and implement effective and high-standard business procedures; Fund investment should have scientific research, decision-making and execution procedures; Guard against risks such as insider trading and improper related party transactions; A supervision and audit department independent of the business department shall be established within the fund manager; Inspectors have full power of supervision and audit, and are full-time to inspect and supervise the compliance of the company and its employees with various laws and regulations and the company system.

6. China Securities Regulatory Commission, together with China Banking Regulatory Commission and China People's Bank, strictly supervise the fund custody business of custodian banks.