The fees paid when buying and selling funds are called subscription fees, subscription fees and redemption fees. Buying before the establishment of the fund is called subscription fee; After the establishment of the fund, it is called subscription fee, and the fee charged when selling the fund is called redemption fee. In China, the expenses of fund subscription, subscription and redemption are generally below 1.5%. Part of these expenses will be used as the expenses of fund sales, and the other part will be accounted into the fund property. The management fee of the fund manager is directly extracted from the fund property.

Some funds do not have to pay subscription fees and redemption fees. For example, the subscription and redemption fee of money funds is usually 0. However, the Monetary Fund draws a certain sales service fee, which is generally not higher than 0.25%.

In addition, according to the charging mode of fund subscription and subscription, the current fund charges can be divided into front-end charges and back-end charges. The front-end charge refers to the charge when the fund is bought, and the back-end charge refers to the charge when the fund is redeemed. Investors who hold it for a long time (generally more than 3 years) can be exempted from subscription and subscription fees when redeeming.

In a broad sense, a fund refers to a certain amount of funds set up for a certain purpose. It mainly includes trust and investment funds, provident funds, insurance funds, retirement funds and funds of various foundations.

From the accounting point of view, capital is a narrow concept, which refers to funds with specific purposes and uses. The funds we are talking about now mainly refer to securities investment funds.

References:

Baidu encyclopedia-fund