The fees charged for bond fund transactions include the following items: sales commission. Investors need to pay a certain fee to the fund sales organization when purchasing funds. At present, 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 a handling fee when purchasing funds, and this fee is delayed until investors redeem them. 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 At present, redemption fees are charged for domestic fund redemption, 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. Fund management fee. When a fund entrusts an expert to manage money, it should pay the expert, that is, the fund company has a certain management fee. At present, the annual management fee in China is generally between 0.3- 1.5%, which varies according to the investment objectives and the difficulty of management. Generally speaking, varieties with higher returns and risks are more difficult to manage, such as stock funds, which have higher management fees; However, varieties with lower returns and risks, such as money market funds, have lower management fees. The payment method of management fee is different from sales fee and redemption fee. The latter two expenses are paid when buying and selling the fund or deducted from the redemption money, and the management fee is deducted from the fund assets. In practice, it is generally calculated every day and deducted from the net value of the day, and investors do not need to pay extra money. Custody fee As we mentioned in Article 1, 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.