When conducting fund transactions, investors need to pay certain transaction fees, which is inevitable. So what are the fund transaction fees? How to reduce transaction fees? We have also prepared relevant content for your reference.

What are the fund transaction fees?

1. Subscription fee: Subscription fee is a fee that investors need to pay when purchasing a fund. It is usually a certain percentage, such as 1.5%. This fee is directly deducted from the subscription amount.

2. Redemption fee: Redemption fee is the fee that investors need to pay when redeeming fund shares. Some fund companies have set a minimum holding period. Redemption within the holding period requires payment of redemption fees. Redemption after a certain holding period is free.

3. Management fees and custody fees: Management fees are fees charged by fund companies for the management and operation of funds. Custody fees refer to fees charged by fund custodians for custody of fund assets. Management fees and custody fees Usually deducted directly from fund assets.

How to reduce transaction fees?

1. Choose funds with low subscription and redemption fees: When choosing funds, investors should carefully compare the subscription and redemption fee levels of different funds. Lower rates mean investors have fewer transaction fees for subscription and redemption, and have less impact on long-term investment returns.

2. Choose funds with low management fees: Index funds have lower management fees because they track the performance of a specific index without requiring active investment management, which can reduce overall transaction costs.

3. Pay attention to the redemption fee regulations: When purchasing a fund, investors should pay attention to the fund's redemption fee regulations. Choose funds that allow free redemptions after a certain period to avoid unnecessary redemption fees. In addition, some funds can be purchased directly through the fund issuing company instead of trading through a third-party platform. Direct purchase can save some transaction commission fees.