Except for the money fund, the transactions of other funds basically require handling fees. However, different types of funds may lead to different rates and fees. The following are the considerations when investing in Bianxiao Fund. Let's have a look!
What do investment funds need to consider?
Investment goal: determining your own investment goal is the primary consideration. Is it for long-term value-added or short-term gains? Is it to protect capital or to pursue high risk and high return? Different investment objectives will affect the choice of appropriate fund types and strategies.
Risk tolerance: It is very important to assess your risk tolerance. Funds with high risks and high returns may bring greater fluctuations and losses, while funds with low risks and low returns may not achieve the expected returns. Knowing your risk tolerance can help you choose a fund that suits your risk preference.
Fund types: Understand different types of funds, such as stock funds, bond funds, hybrid funds and index funds. , as well as their investment strategies and risk characteristics, choose the fund types that meet their investment objectives and risk preferences.
Fund cost: pay attention to the cost structure of the fund, including management fee, custody fee and sales service fee. Higher fees will exert greater pressure on investment returns, and low-cost funds are usually more favored by investors.
Fund managers and fund companies: evaluate the experience, professional ability and past performance of fund managers, as well as the reputation and management quality of fund companies. Excellent fund managers and reputable fund companies can provide a more stable return on investment.
The purchase process of the fund is the most important.
Determine investment objectives and risk tolerance: make clear your investment objectives and risk preferences so as to choose the appropriate fund type and strategy.
Market research and fund comparison: conduct market research to understand the investment strategies, performance and risk characteristics of different funds, compare and evaluate them, and choose funds that meet their own needs.
Understand the fund's fees and rates: pay attention to the fund's management fees, custody fees and sales service fees, and evaluate the overall cost level of the fund.
Buy funds: Choose appropriate investment channels, such as banks and securities companies to buy funds. Fill in the relevant application form and pay the purchase amount.
Regular monitoring: after purchasing the fund, regularly monitor the performance and risk status of the fund, allocate assets and adjust the fund portfolio as needed.
Specific calculation method of fund handling fee
Fund expenses usually include the following aspects:
Front-end loading: this is a kind of fee paid when purchasing funds, also known as front-end sales fee. The sales service fee is usually a certain proportion of the fund share, such as 2% or 3%. This means that investors need to pay a certain percentage of fees when purchasing funds, and the remaining funds are used to purchase fund shares.
Back-end loading: Some funds have redemption fees, also called back-end sales fees. Redemption fee is the fee charged by investors according to a certain proportion when redeeming fund shares. The redemption fee usually decreases gradually with the extension of holding time, for example, the initial redemption rate is 5%, and it will gradually decrease to 0% after holding for a period of time to encourage long-term holding.
How much is the handling fee for trading funds?
Management fee: Management fee is the fee required by the fund company to manage the fund. Management fees are usually charged according to a certain proportion of the fund's net asset value, such as 1% or 2%. Management fees will be deducted from fund assets, which will have an impact on investors' income.
Custody fee: Custody fee refers to the fund's expenses for asset custody to ensure the safety of fund assets. Custody fees are usually charged according to a certain proportion of the fund's net asset value, such as 0. 1% or 0.2%.
How much is the handling fee for the fund?
First of all, for open-end funds, the handling fee mainly includes subscription fee/subscription fee, redemption fee and sales service fee.
Subscription fee/subscription fee is charged when buying a fund. Under normal circumstances, the subscription fee is relatively high in the fund fee. However, due to the fierce competition in fund sales among major platforms, the subscription fees are basically discounted, and the lowest can even be reduced to 1%, so the actual handling fee for buying funds is relatively low.
The subscription fee is the handling fee for purchasing a new fund. The subscription fee is generally slightly lower than the subscription fee, but the subscription fee is generally not discounted, so the actual rate may be higher.