The advantages and disadvantages of front-end charging and back-end charging are as follows: the front-end charging mode is a normal charging mode, and the buyer's expenses are calculated at one time when investors buy. When investors redeem for some reason later, they only need to pay the redemption fee according to the regulations. It has a significant disadvantage, that is, the share of investors after purchase is often unsatisfactory and fragmented because of deducting related expenses. For example, the net value of Fund A is 2 yuan, the front-end fee is 1.5%, and the redemption fee is 0.5%. An investor A buys 1000 yuan, so the total amount of funds he actually gets in the end is =1000-1000x1.5% = 985 yuan, and the share A actually gets is = 985/2 = 492.5 (shares). It also has a significant advantage, that is, when investors redeem later, they are free and convenient because they no longer consider deducting the relevant subscription fees! Therefore, the most suitable front-end charging mode is those short-term holders or band operators. In addition, the front-end charging model is good for banks, which is why many bank lobby managers do not explain the front-end charging and back-end charging to new investors.
The obvious advantages of back-end charging are: adopting back-end charging can greatly save the subscription cost, and at the same time, because investors do not need to deduct relevant fees when purchasing, investors can easily get the desired fund share. Analysis and summary:
(1) The front-end subscription rate generally decreases with the increase of subscription amount. The subscription amount (m) m < 1 ten thousand yuan, and the subscription rate1.5%; 1100,000 yuan, m
(2) When the fund company sells directly online, investors can generally enjoy the preferential rate of the front-end subscription fee, such as a 40% discount on the front-end subscription fee for online trading of Guangfa Fund Fortune Express.
(3) The back-end charge is inversely proportional to the holding time, that is, the longer the holding time, the lower the rate until it is zero.