Fund expenses generally include two types: one is the expenses borne by fund investors in the process of fund sales, mainly including subscription fees, subscription fees, redemption fees, fund conversion fees, etc. These fees are generally charged directly when investors subscribe, purchase, redeem or convert. The subscription fee can be charged when investors buy funds, that is, the front-end subscription fee; It can also be charged when investors sell funds, that is, the back-end subscription fee, and its rate is generally decreasing according to the holding period. The other category is the expenses incurred in the process of fund management, mainly including fund management fees, fund custody fees and information disclosure fees. These expenses are borne by the assets of the fund. For money market funds and some bond funds that do not charge subscription and redemption fees, a certain fee can also be extracted from the fund assets at a ratio of no more than 2.5‰, which is used exclusively for fund sales and services to fund holders.

Cost of sales

Investors need to pay a certain fee to the fund's sales organization when purchasing funds. The sales rate of domestic funds is generally between 1- 1.5% of the fund amount. The sales expenses during the fund issuance period are called subscription fees, and the daily sales expenses after the issuance period are called subscription fees. Generally speaking, in order to attract investors to buy funds, the subscription rate is cheaper than the subscription rate. In order to enable investors to hold funds for a long time, some fund companies have also introduced a back-end charging model, that is, investors do not charge fees when they buy funds, but postpone this fee until investors redeem it. However, if the investor holds the fund for more than a certain period of time, there is no need to pay the redemption fee.

Redemption fee

Redemption fees are charged for domestic funds, mainly to pay the operating expenses at the time of redemption. The general redemption rate is about 0.5% of the redemption amount. Similarly, investors are encouraged to hold funds for a long time. Some fund companies have introduced a charging method that the redemption fee decreases with the increase of holding time, that is, the longer the fund is held, the less the redemption fee will be paid during redemption, and no redemption fee will be charged after holding for a certain period of time. According to the latest fund regulations, 25% of the redemption fee should be included in the fund assets to compensate the investors who have not been redeemed.

Management cost

Fund management fee refers to the fee charged by the fund manager to manage the fund assets. This is a fixed ratio. No performance commission.

1, accrual standard

The fund management fee rate is usually inversely proportional to the fund size and directly proportional to the risk. The larger the fund scale, the lower the fund management fee rate; The higher the degree of fund risk, the higher the fund management fee rate. Different countries or regions have different management fees for different types of funds.

However, in terms of fund types, the management rate of securities derivative funds is the highest. For example, the management fee in the warrant fund is about1.5% ~ 2.5%; Equity funds are in the middle, about1%~1.5%; The bond fund is about 0.5% ~1.5%; Money market funds are the lowest, and the management fee is about 0.25% ~ 1%. Fund management fee, bond fund management fee is generally lower than 1%, and money market fund management fee is 0.33%.

The proportion of fund custody fee is related to the fund size and fund type.

Fund custody fee, according to the proportion agreed in the fund contract, open-end funds are usually less than 0.25%; The custody rate of stock funds is higher than that of bond funds and money market funds. Only money market funds can pay the fund sales service fee from the fund assets, and the rate is about 0.25%.

2. Accrual basis and payment method

China's fund management fee, custody fee and fund sales service fee are all accrued daily and paid monthly according to a certain proportion of the net asset value of the previous day.

trustee fee

The principle of fund management is "separation of investment and custody". The custodian institution is responsible for the custody and delivery of the fund assets, and also has the function of supervising the fund company, so it is necessary to pay the custodian fee to the custodian institution. Generally speaking, in China, the annual custody fee is about 0.25% of the fund's net asset value.

transaction cost

Fund transaction costs refer to the related transaction costs incurred by the fund in securities trading. The transaction costs of China's securities investment funds mainly include stamp duty, transaction commission, transfer fees, handling fee and securities management fee.

operating costs

Refers to the expenses that should be borne by the fund to ensure its normal operation. The expenses incurred are more than 1/10000 of the fund's net value, which should be included in the fund's profit and loss by withholding or deferring. The expenses incurred are less than 1/100,000 of the fund's net value, and shall be directly included in the fund's profit and loss when incurred.