What are the expenses of index funds?
I. Subscription fee and redemption fee
On-site funds such as ETF also support subscription, but the number of ETF funds is generally several hundred thousand. We generally don't get ETF funds through subscription, but through trading ETFs in the market, so we don't have to care about the subscription fee and redemption fee of ETF funds.
Off-exchange funds are generally obtained through subscription. The subscription fee for OTC funds is generally higher. For example, the larger the single subscription amount, the lower the subscription rate. Now many online sales channels, such as Tian Tian Fund and Alipay, support 1 preferential subscription rate.
The redemption fee of OTC funds is related to the holding time. Generally, the redemption fee is within one year, and there is no redemption fee for one or two years.
Second, the transaction commission
Trading commission is aimed at the funds in the market and can be obtained through buying and selling. Just like stocks, you need to go to a brokerage to open a stock account. The trading commission of on-site funds is the same as that of stocks, and most brokers can negotiate the commission level.
Three. stamp tax
Stamp duty is for stocks, and on-site funds and off-site funds do not need to pay stamp duty.
Fourth, the sales service fee.
We can often see that some fund companies choose a fund free of subscription fees, usually a class C fund. Although Class C funds hold 1 month or more without subscription fee or redemption fee, they will charge a certain percentage of sales service fee, generally 1 year.
Verb (abbreviation of verb) management fee and custody fee
Management fees and custody fees will be generated when the fund operates, which will be deducted directly from the net value of the fund. Management fee is the profit source of fund companies, and the management fee of active funds is generally around the index fund of fund size.
Custody fees are paid to third-party custodians, usually big banks. The average custody fee of domestic index funds is around 100.
Well, that's all for index funds. I hope it helps you. Warm reminder, the fund is risky and needs to be cautious in investment.