What are the misunderstandings in analyzing the fund redemption fee?
In the process of fund trading, it was found that many citizens did not know much about the fund redemption fee, and they lost a lot of handling fees when redeeming. So how do we novices avoid the redemption misunderstanding? Xiaobian here sorted out what are the misunderstandings of the fund redemption fee for your reference. I hope everyone will gain something in the reading process!
Why is there a fund redemption fee
Simply put, the fund redemption fee is a compensation mechanism for other fund holders, and it is also to curb the short-term arbitrage behavior of some institutions and individuals. Because short-term frequent operation will not only interfere with the normal investment rhythm of the fund, drag down the performance of the fund, but also harm the interests of long-term holders, so the fund redemption fee is set to ensure the stability of the fund scale.
At present, China's laws stipulate that open-end funds can charge redemption fees, but the redemption rate shall not exceed 3% of the redemption amount. We usually buy funds, of course, the lower the better on this basis.
How to calculate the redemption fee
Redemption fee = redemption share T-day fund unit net redemption rate
Suppose investors redeem a fund with a share of 1W, the fund redemption rate is .5%, and the fund unit net value on that day is 1.12 yuan, and the redemption amount obtained is: redemption fee =1_1.12_.5%=55.1
. For example, the following fund: it is a file within 7 days; 7 days to 3 days is a file; 3 days to 1 year is a file; 1 to 2 years is a file; You don't need a redemption fee for more than 2 years.
its redemption fee is at least .5%. So don't take it for granted that the longer you hold it, the lower the redemption fee will be, and you should follow the fund contract.
2. The lower the risk level, the lower the redemption fee
Bond funds are a kind of low-risk funds, but if investors hold them for less than 7 days, they will also charge a redemption fee of not less than 1.5%.
In addition, many index funds have set up C shares, which are generally held for 7 days or more, and the redemption fee will be free. So don't think that the lower the risk level, the lower the redemption fee, and the higher the redemption fee for short-term redemption behavior.
3. The redemption fee has been collected by the fund company.
For stock funds and hybrid funds, if they are held for more than 6 months, the fund manager shall include no less than 25% of the total redemption fee into the fund property; The redemption fee of investors who hold it for less than 3 days will be fully included in the fund property. The bond fund is held for more than 7 days, and the fund manager should classify no less than 25% of the total redemption fee into the fund property; The redemption fee of investors who hold it for less than 7 days will be fully included in the fund property.
There are some differences in the rules for deducting redemption fees for different kinds of funds. Investors should read the prospectus of relevant funds carefully before investing.
4. There is no redemption fee for fund conversion
Fund conversion can be understood as that the fund company helps you to redeem and re-purchase. Therefore, it is necessary to charge a redemption fee, and not only the redemption fee for the transferred fund, but also the subscription replenishment fee for the transferred fund will be charged.
once again, warm reminder, when redeeming the fund, don't take it for granted. Although many regulations are applicable to most funds, they do not represent all. The best way is to consult the fund contract and prospectus before buying a fund, so as to know fairly well.
How to avoid exorbitant redemption fee
It's not enough to understand these principles about redemption fee. If you want to save money on redemption fee, you should pay attention to some special circumstances, otherwise you may be charged with punitive redemption fee and other money.
the first case: if the investment is made for more than 2 years in a row, is there no redemption fee?
generally speaking, if a fund is held for more than 2-3 years, there is no redemption fee, which is subject to the provisions in the fund contract. However, the fixed investment is essentially what we call buying in batches. Therefore, if it is fixed for 2 years, it does not mean that all shares are held for 2 years. When selling, the redemption fee should be calculated on a case-by-case basis.
We must pay attention to this aspect when redeeming the fixed investment, especially if the fund share of the last fixed investment is held for less than 7 days, it will be charged a punitive redemption fee of 1.5%.
the second case: my fund has been transferred to custody. how to calculate the holding time when it is redeemed?
there is a new term, transfer custody, which is actually not difficult to understand, that is, transfer the funds held from A sales organization to B sales organization. The answer is given here first. After the fund is transferred to custody, it does not affect the holding time, and the redemption is still carried out in accordance with the principle of first-in first-out.
Actually, this is very simple. According to the principle of FIFO, the holding time of 1, shares transferred from Bank A to Bank B is still 2 years, so no redemption fee will be charged, while the redemption fee of 1, shares bought by Bank B five days ago will be 1.5%, that is, 15 yuan (note, the net value is 1 yuan).
to sum up, no matter how many times you have been transferred to custody, you will only recognize the time when you first bought this share when you sell it, not the time when you transferred it to custody.
in the third case, a redemption fee will be charged for the dividends distributed by the fund?
The introduction of dividends should be treated separately. Dividends of OTC funds are divided into cash dividends and dividend reinvestment. The cash dividends are directly transferred to customers' bank deposits, and generally no redemption fee is charged. The dividend reinvestment is to directly purchase this fund product with the dividend money. If this newly purchased share is held for less than 2 years, the corresponding redemption fee will usually be charged according to the specific time.
Therefore, it is suggested that before the fund has dividends, if it needs to be redeemed, it is best to change the redemption method to cash dividends. Otherwise, according to the relevant regulations, a redemption fee of 1.5% will be charged if the share of dividend reinvested purchase is held for less than 7 days.
once again, warm reminder, when redeeming the fund, don't take it for granted. Although many regulations are applicable to most funds, they do not represent all. The best way is to consult the fund contract and prospectus before buying a fund, so as to know fairly well.
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