Subscription fee: the handling fee paid by investors when purchasing fund shares during the fund issuance and raising period. The calculation formula is: subscription fee = subscription amount × subscription rate, net subscription amount = subscription amount-subscription fee; The subscription rate is usually around 1%, and there are corresponding discounts with the size of the subscription amount.
Subscription fee: the handling fee paid by investors to purchase fund shares from the fund manager during the existence of the fund after its establishment and when the fund is in an open subscription state. According to the regulations, the subscription rate shall not exceed 5% of the subscription amount. At present, the subscription rate is usually around 1.5%, and there are corresponding discounts with the subscription amount. Subscription is purchased when the fund is issued, which is somewhat similar to buying the original shares of the stock. Subscription is to buy funds after the closed period, just like buying stocks in the secondary market.
Redemption fee: the handling fee paid by investors who already hold fund shares to the fund manager during the existence of open-end funds. The purpose of redemption fee design is mainly to arrange a compensation mechanism for other fund holders. Usually, redemption fee is included in fund assets. According to the regulations, the redemption rate shall not exceed 3% of the redemption amount. At present, the redemption rate is usually below 1%, and there are corresponding discounts with the length of holding period.
These expenses will be listed in the prospectus of the fund.