When it comes to investment, in fact, we often ignore the fact that the income we get is the return brought by investment, but at the same time, we will pay all kinds of expenses and costs in this process, and after deducting these expenses and costs, it is the money we really earn. Today, Bian Xiao will share the secret of fund investment cost with you, for your reference only!
Expenses in the process of fund operation
"Tangible expenses" and "intangible expenses".
The so-called visible expenses refer to the expenses of buying and selling funds, including the subscription fee for buying funds and the redemption fee for selling funds. We can clearly see on the operation page that they are charged at one time when "buying and selling". Generally speaking, the larger the subscription amount, the lower the subscription fee, the longer the fund is held, and the lower the redemption fee. I would like to remind you that, except for monetary funds, most funds that have been held for less than 7 natural days will be charged a punitive redemption fee of not less than 1.5%.
So, what is the "invisible cost"? Why can't we see? These expenses are the operating expenses of the fund, including management fees, custody fees and sales service fees. These expenses are directly deducted from the fund assets, which means that the net value of the fund we see every day is deducted from this part of the expenses, so we can't see it.
The management fee is paid to the fund company, because the fund company helps us make investments, and this service is charged. Generally speaking, the more difficult the fund management is, the higher the management fees charged, and the management fees of stock funds and hybrid funds are often the highest.
Pay the custody fee to the custodian bank, the fund's funds are deposited in the bank, and the bank also charges fees for keeping the fund assets. Sales service fees are used to pay for fund marketing and user services.
How much does it cost to invest in a fund?
For example, if we buy a partial stock hybrid fund, plus the custody fee and management fee, the total annual operating cost is 1.75%. According to the time we hold and the preferential conditions of trading channels, the transaction cost of buying and selling this fund will be a little different. As long as it is held for more than 7 days, there is no punitive redemption fee. If we hold it for more than two years, we don't need to pay the redemption fee, and we buy it in a sales channel with a relatively large discount, such as a platform, and the subscription rate 1 discount is only 0. 15%, then our total transaction rate is 0. 15%. The cost of stocks and hybrid funds is basically like this.
The Monetary Fund does not charge subscription and redemption fees, but it will charge about 0.25% of sales service fee, no more than 0.33% of management fee and no more than 0. 1% of custody fee every year, so the total fee is at most 0.68%.
The cost of bond funds is between stock funds and money funds.
Some investors have not held the fund for a long time, so it is more cost-effective to buy the class C share of the fund. The management fee is the same as the custody fee, but it does not charge subscription fee, nor does it charge redemption fee after holding it for a period of time. Although the sales service fee will be deducted from the net value, the total fee is lower than the subscription fee due to the short holding period.
Ways to reduce investment cost:
First, choose a sales channel with a lower subscription fee. Generally speaking, the Internet fund sales platform, the fund company's own official website, APP, often have a rate discount that surprises you.
Second, stick to long-term investment and avoid frequent buying and selling. Some people say this is true, but sometimes I find myself making a mistake and have to sell and buy another fund. Isn't the cost high? Actually, there is another way to save money.
That is to use the fund conversion function skillfully. Converting a fund of the same company into a fund of B is called fund conversion, which only needs to pay the redemption fee of the transferred fund and the subscription fee more than that of the transferred fund. If the subscription rates of the two funds are the same, there is no need to pay the subscription fee, which reduces a fee. Fund switching can also save you time. Usually, the conversion application submitted on T day will be confirmed to be transferred to the fund share on T+ 1 day.
In the past two years, the returns of funds purchased by many investors are generally unsatisfactory. What caused the large losses of most funds? Mars, an analyst at Shanghai Securities Fund Evaluation Center, pointed out that, first of all, the essence of fund products is the combination of securities, and the performance of fund income is closely related to the performance of the underlying market. In the continuous decline of the stock market, it is difficult for equity funds and hybrid funds, which mainly invest in stocks, to achieve positive returns. In the case of rising stock market, most partial stock funds can often achieve positive returns. Therefore, it is impossible for funds to create myths and create high positive returns in the continuous decline of the market in recent years.
From the long-term performance, in most cases, the overall performance of funds is better than that of individual investors, especially in bull markets and volatile markets. For example, in 2006 and 2007, more than 80% of equity funds achieved a return of more than 100%, while the proportion of individual investors was less than 20 12 years. Nearly 50% of equity funds have achieved a return of 5% to 30%. According to the survey, more than 50% of individual investors have lost between 5% and 50%. Therefore, the fund is still a good investment tool for individual investors to participate in the capital market.
All kinds of problems, whether China's stock market construction, economic development or asset management industry, can't be eliminated in a short time, and all need the rationality of the market as a whole to promote it. However, as investors themselves, we must measure our risk tolerance clearly and not blindly listen to the propaganda of sales staff. If your risk tolerance is weak, or the funds you want to use in the short term, you can't invest too much in a single stock fund to avoid being greatly affected by the risk of stock market fluctuations. Therefore, for individual investors, it is more meaningful to have a long-term investment mentality, choose appropriate fund products according to their own risk tolerance and renewal, avoid excessive pursuit of popular funds with outstanding short-term returns, pay more attention to funds with relatively stable long-term performance, and spread risks through fixed investment and portfolio allocation to obtain long-term stable returns.
Tip:
First, we should pay attention to arranging the proportion of fund varieties according to our own risk tolerance and investment purpose. Choose the fund that suits you best, and set an investment ceiling when buying partial stock funds.
Second, be careful not to buy the wrong "fund". The popularity of funds has led to some fake and shoddy products "fishing in troubled waters", so we should pay attention to identification.
Third, pay attention to the post-maintenance of your account. Although the fund is worry-free, it should not be left unattended. Always pay attention to the new announcements on the fund website, so as to have a more comprehensive and timely understanding of the funds you hold.
Fourth, pay attention to buying funds, and don't care too much about the net value of funds. In fact, the fund's income is only related to the net growth rate. As long as the fund's net growth rate stays ahead, the income will naturally be high.
Fifth, we should be careful not to "love the new and hate the old" or blindly pursue new funds. Although the new fund has inherent advantages such as preferential prices, the old fund has long-term operating experience and reasonable positions, which is more worthy of attention and investment.
Sixth, we should be careful not to buy dividend funds unilaterally. Fund dividend is the return of investors' previous income, so it is more reasonable to change the dividend method to "dividend reinvestment" as far as possible.
Seventh, we should pay attention not to talk about heroes in the short term. It is obviously unscientific to judge the pros and cons of the fund by short-term ups and downs, and it is necessary to make a comprehensive evaluation of the fund in many aspects and conduct a long-term investigation.
Eighth, we should pay attention to the flexible choice of investment strategies such as steady and worry-free fixed investment and affordable and simple dividend transfer.
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