Front-end and back-end are two charging methods of fund reservation and subscription. What's the difference between the front end and the back end of the fund? The following is Bian Xiao's introduction.

1, different charging methods:

The fund front-end charging mode refers to the charging method that investors pay the subscription (or appointment) fee when purchasing open-end funds.

The back-end charging mode refers to the charging mode that investors do not pay the order (or reservation) fee when buying open-end funds and do not pay when selling them.

2, the appropriate long-term investment is different:

The front-end model is classified according to the size of investment, which is suitable for large short-term investment.

Back-end purchase costs are classified by holding years. The longer the holding period, the lower the cost, which is suitable for people who want to accumulate more and invest for a long time.

3. Different purchase offers:

If you buy a fund online, only the front-end fee can enjoy the preferential subscription fee. In addition, if you want to convert the funds in different periods, please don't choose the back-end fee, because after the conversion, all the original years will become zero, which is uneconomical.