The front-end charge refers to the direct deduction of the handling fee when purchasing the fund, that is, only a part of the principal invested (after deducting the handling fee) can bring benefits. The front-end charging rate is generally 65438+ 0.5% for bank counters and 0.6% for online direct sales. Of course, there are exceptions. The back-end charge is that the subscription fee is not charged at the time of subscription, and it is charged at a certain proportion of the subscription amount at the time of redemption. In other words, all the principal you invest will bring you benefits during the holding period, so the back-end charging rate is generally higher than the front-end charging. For example, the subscription rate in 1.8% is generally 1.8%, and the longer the time, the lower the rate. Of course, there are exceptions. For example, the financial funds within one year are generally 1.9%. For the form of front-end charge, the calculation methods of subscription fee and subscription share include internal deduction method and external deduction method, and their calculation formulas are different. Specifically, the deduction method adopts division, and the specific calculation formula is as follows: net subscription amount = subscription amount /( 1+ subscription rate) subscription fee = subscription amount-net subscription amount, subscription share = net subscription amount/net fund share on the subscription day. The internal deduction method adopts multiplication, and the specific calculation formula is: subscription fee = subscription amount? Subscription rate, net subscription amount = subscription amount-subscription fee, subscription share = net subscription amount /T-day net fund share. In the past, the internal deduction method has been used for calculation. At present, the CBRC requires a unified external deduction method, so most funds now use external deduction method for front-end charges. Of course, front-end charges and back-end charges refer to subscription fees and redemption fees, and the general redemption rate is 0.5% (there are exceptions, such as financing 0.3%). If you have deducted the subscription fee when you subscribe, it must be the front-end fee. At present, the default method of most funds is the front-end fee of the external deduction method. Of course, you can also choose the front end or the back end according to your own situation, but you can't choose the inner buckle and the outer buckle.