Most people know that the fund market can make profits, but in the face of the risky fund market, many people want to enter but dare not, so they can only entrust others to manage their finances. Entrusting others to handle it will naturally generate certain expenses. The operating expenses of the Fund are those incurred in the daily operation of the Fund, including management fees, custody fees and sales service fees. So, is the fund operation fee deducted every day?

Is the fund operating fee deducted every day?

The fund operation fee is deducted every day. The fund operation fee is equivalent to the management fee, which will be deducted from the daily net settlement. The operating rate is accrued on a daily basis and settled on a monthly basis, that is, a certain operating rate is charged every day. That is to say, the operating expenses are charged according to the total daily net asset value of the fund, and the daily net asset value of the fund is floating, so although the operating rate is fixed, the daily amount of the operating expenses is not fixed.

What is the fund fee?

The expenses of the general fund include subscription/subscription fees, management fees, sales service fees, custody fees and redemption fees.

Among them, the subscription fee refers to the fee that needs to be paid when purchasing the fund. Generally, the larger the fund share, the smaller the subscription rate. Management fee is the fee that the fund manager needs to pay for management and operation after purchasing the fund, which is generally collected annually. The sales service fee is used by the fund management institution for sales expenses, sales agency expenses and fund share holders' expenses.

Custody fees are also charged annually and paid to the custodian bank. Redemption fee refers to the time when the fund holder holds the fund for a short time or fails to meet the requirements of the fund, and the fund company will charge a certain fee.

Summary: The biggest difference between operating expenses and redemption expenses is that such expenses are accrued in the fund assets every day and do not need to be deducted during the transaction. Management fee is the main source of income for fund companies and the reward that fund managers deserve for managing funds.