Overview of fund expenses Investment funds are a common way to manage money, but investors need to pay a certain fee when they fund. These expenses include sales service fees, management fees, custody fees, etc. The following will introduce the fees of the fund in detail.
Sales service fee Sales service fee is the fee charged by the fund sales organization, usually called "front-end fee", which is a certain proportion calculated according to the fund amount. Investors need to pay this fee when they are in the fund, which is generally within 5%. With the increase of investors' holding time, the proportion of sales service fees will gradually decrease.
Management fee Management fee is the fee charged by the fund management company for managing and operating the fund, which is usually called "back-end fee" and is a certain proportion calculated according to the net asset value of the fund. Management fees are usually between 1%-2%, and different types of funds may have different management fees.
Custody fee Custody fee is the fee charged by the fund custodian for managing and keeping the fund assets, which is charged according to a certain proportion of the net asset value of the fund. Custody fees are usually between 0. 1%-0.2%, and different fund custodians may charge different fees.
Other expenses In addition to the above three expenses, the Fund may also have other expenses, such as back-end expenses, redemption fees and conversion fees. Investors need to carefully read the fund contract and prospectus when they are in the fund to understand all the expenses of the fund.
How to reduce the fund handling fee? Investors can reduce fund fees by choosing low-rate funds. At the same time, fixed investment is also a way to reduce the fund cost, which can disperse the influence of market fluctuation, reduce the average cost and improve the long-term income.
Fund fee is an important problem that fund investors need to face. Investors need to carefully understand the various expenses of the fund and choose the right fund investment to maximize the return on investment.