Aside from closed-end funds operated by securities accounts, open-end funds are sold by banks, brokers and fund companies.
At present, banks are the most frequently used channels for most investors. At present, there are 18 commercial banks with fund consignment qualification in China. It should be noted that not all the outlets of these banks have the function of selling funds on commission, and the funds sold by banks are not the same. Before buying, you should carefully understand the situation of its sales funds.
Investors can also buy funds at brokerage outlets. At present, there are 63 securities companies with fund consignment qualification in China.
Direct selling of fund companies includes counter trading and online trading through direct selling centers. Among them, the over-the-counter transactions of fund companies usually set a higher threshold for investors' initial subscription and subscription, generally targeting some high-end individual customers and institutional customers. Fund companies also have fewer direct sales outlets.
Most fund companies have opened online direct selling platforms. Investors can purchase funds online through fund companies after handling the corresponding bank cards and opening the online trading function. The online transaction rate is also the lowest among all transaction methods.
Consignment or direct sales?
Banks, brokers, fund companies' direct selling centers and electronic direct selling all have their own advantages and disadvantages. We can't absolutely say which channel is good or bad. We can only say that they meet the needs of different investors, and investors need to choose their own channels.
(1) Bank branch
Advantages:
A. safe and reliable.
B.there are many exits.
Disadvantages:
A. the products are limited. How many fund products do banks sell? If you want to invest in the products of several fund companies, it is usually difficult to do it in the same bank, and investors have to go to different banks.
B. time limit. Banks only handle fund business from 9: 00 to 15: 00 from Monday to Friday, which means that some office workers can only take time off to go to the bank, which is very inconvenient.
C. red tape and low efficiency.
D. the services provided are limited in professionalism.
(2) Brokerage outlets
Advantages:
A. the number of funds sold is large and the variety is complete. Some large securities companies sell almost all fund products on a commission basis. Therefore, investors can usually choose the products of multiple fund companies as long as they open an account once, which is an incomparable advantage of the three channels.
B. service specialty. Compared with bank outlets, the staff of brokerage outlets have a deeper understanding of funds, especially equity funds, and can answer investors' related questions and give suggestions.
Disadvantages:
A. there are few exports.
B. These procedures are cumbersome and inefficient.
(3) fund company direct sale center
Advantages:
A. this ratio is very low. The direct selling rate is lower than that of the consignment channel.
B. professional services. You can enjoy all kinds of one-on-one investment and wealth management services provided by professionals of fund companies, which is the highest degree of service specialization among the four channels.
Disadvantages:
A. the threshold is high. Each fund company has certain restrictions on the minimum investment limit of direct sales channels. Generally, the minimum amount of the first transaction is more than 654.38+10,000 yuan. Therefore, fund direct sales are basically only aimed at high-end individual customers and institutional customers, and it is difficult for ordinary people to enjoy direct sales services.
B.there are few exports. There are very few direct sales outlets of fund companies, mainly concentrated in big cities and economically developed areas such as Beijing, Shanghai, Guangzhou and Shenzhen, and some fund companies even handle direct sales business only at the company headquarters.
What is the cost of trading funds?
There are two kinds of fund transaction costs, one is directly borne by investors, which will be directly deducted when trading, and the other part belongs to fund operation costs, which are charged in the fund assets, that is to say, the net value of the fund you see has been deducted from this part of the costs, and investors do not need to pay directly. Generally speaking, the main expenses involved from the investor's purchase of the fund to the redemption of the fund include:
Direct costs:
(1) subscription fee. The subscription fee is the fee charged to the investors who buy the fund during the fund raising period, that is, the fee that needs to be paid when buying a new fund. At present, this fee is usually around 1%, and money market funds do not charge subscription fees.
(2) Subscription fee: Subscription fee is the fee charged by investors when they subscribe. At present, the subscription rate of domestic open-end funds is generally 1% ~ 1.5% of the subscription amount. Subscription and subscription are basically set with multi-level rates, that is, the larger the investment amount, the lower the rate.
(3) Redemption fee: Redemption fee is the fee deducted from the redemption money when the investor redeems. The balance of the redemption fee income after deducting the basic handling fee belongs to the fund. At present, the redemption rate of domestic open-end funds is generally between 1%- 1.5%.
Fund operating expenses: expenses deducted from fund assets to maintain fund operation are not directly paid by investors.
(1) Fund management fee: the fee paid to the fund manager to bear the cost of managing the fund. Fund management fees shall be accrued on a daily basis. At present, it is generally 1.5% annualized in China, and most money market funds are 0.33%.
(2) Fund custody fee: the fee paid to the fund custody bank to pay the fund asset custody fee. The fund custody fee is accrued daily, and the annual rate is generally around 0.25%.
(3) Other expenses: mainly including investment transaction expenses, fund information disclosure expenses, accountant fees and attorney fees related to the fund, holders' meeting fees, etc. These expenses are also directly deducted from the fund assets as the operating cost of the fund.
Front end or back end?
Front-end expenses refer to the corresponding subscription/subscription expenses when investors subscribe and purchase funds.
Back-end charge means that the investor does not pay the subscription/subscription fee first, but pays it together with the redemption fee when redeeming the fund. Generally speaking, there are different rates for back-end charges, that is, the longer you hold the fund, the lower the back-end subscription rate you need to pay when redeeming it. At present, many fund companies stipulate that this rate will be reduced to zero after holding the fund for more than five years to encourage investors to hold the fund for a long time. Therefore, investors who make long-term investments are more suitable to choose the back-end charging model.