Why do you need to be careful in fund trading _ Origin of the fund trading market

Except for the money fund, the trading of other funds basically requires handling fees. However, different types of funds may lead to different rates and collection methods of handling fees. The following is a small collection of why fund transactions need to be careful, let's take a look!

Why do you need to be careful about fund trading

Fund investment risks: Fund investment involves market fluctuations and risks, especially stock funds are easily affected when the market fluctuates greatly. Investors need to pay attention to the risks and adaptability of the market so as not to suffer losses at unfavorable times.

market liquidity restriction: although funds usually have high liquidity, the buying and selling of funds may be restricted in some periods or under certain circumstances. For example, when a large number of investors flood into the fund, the fund may suspend redemption, resulting in investors not being able to obtain funds in time.

Impact of speculation: Some investors may pursue quick profits through short-term trading behaviors, such as chasing high and killing low, day trading, etc. These speculative behaviors may lead to the decline of investors' profitability.

misleading information and uncertainty: in the fund trading market, there are a lot of information and analysis reports, including both true and credible information and inaccurate or misleading information. Investors need to have good information screening and judgment ability to avoid being influenced by wrong information.

the origin of the fund trading market

the origin of the fund trading market can be traced back to the early 2th century. With the increase of investors' demand for diversified investment, people began to pool funds to form a way of pooling funds for investment. The earliest fund trading market can be traced back to British investment trusts, which pooled investors' funds and were invested by professional fund managers.

subsequently, on a global scale, the concept of fund has been continuously developed and evolved, and various countries have introduced corresponding fund regulations and regulatory measures, which has promoted the formation and development of the fund market. At present, the fund trading market has become an important part of the global financial market, providing investors with diversified investment options and opportunities.

how many kinds of fees are involved in fund transactions

subscription fees (purchase fees): the subscription fees of funds refer to the fees that investors need to pay when purchasing funds. The subscription fee is usually calculated in a certain proportion (such as a few ten thousandths), and the fees to be paid are determined according to the investment amount. The specific subscription fee rate varies with fund companies, fund types and sales channels.

redemption fee (selling fee): the redemption fee of a fund refers to the fee that investors need to pay when redeeming fund shares. The redemption fee is usually calculated in a certain proportion, and the required fee is determined according to the redemption share or redemption amount. Some funds may have a "lock-in period" for redemption fees, and redemption during the lock-in period will generate additional fees.

handling fee: the handling fee that may be involved in the fund transaction, such as the transaction commission in the process of buying and selling. The calculation method and proportion of the handling fee will vary according to the specific brokers, fund companies or sales channels.

management fee: the management fee of the fund is the fee charged by the fund company for managing the fund. Management fees are usually calculated as a certain proportion of fund assets (such as annual rate or daily rate) to pay the operating expenses of fund managers, research teams and fund companies.

trust fees: some funds are trust funds, and the fees that investors need to pay to trust companies are used to trust and manage fund assets.

please note that different fund products, fund companies and sales channels may have different fee structures and fee levels. Before buying a fund, it is recommended to know the cost information of the fund in detail and consult with investment professionals to understand the calculation method and relevant regulations of the specific cost.

calculation method of fund purchase fee

generally, it is calculated in the following ways:

purchase fee = purchase amount × subscription fee rate

where the purchase amount refers to the investment amount of investors when they purchase funds. The subscription fee rate is the proportion of subscription fee stipulated by the fund company, usually expressed in tens of thousands. The calculated purchase cost will be deducted from the investor's purchase amount.

what are the handling fees of the fund?

first of all, for open-end funds, the handling fees mainly include subscription fee/subscription fee, redemption fee and sales service fee.

the subscription fee/subscription fee is charged when buying the fund. Under normal circumstances, the subscription fee is relatively high in the fund handling fee. However, due to the fierce competition among major platforms in fund sales, the subscription fee is basically discounted, and the lowest can even be reduced to 1%, so the actual fee for buying funds is relatively low.

the subscription fee is the handling fee for buying new funds. 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.

However, there are also some funds that have no subscription fees and subscription fees.

the redemption fee is the handling fee charged when selling the fund. Although the redemption fee of the fund can't be discounted like the subscription fee, it can be reduced or exempted. How much can be reduced or exempted mainly depends on the length of time the fund is held. The longer it is held, the more it can be reduced or exempted, and the minimum can be reduced to , that is, there is no redemption fee.

the sales service fee is a fee charged only for funds without subscription fee/subscription fee. For such funds, although there is no subscription/subscription fee, the sales service fee is equivalent to the subscription fee.

Secondly, for closed-end funds, the handling fees are mainly trading commissions and transfer fees. The trading commission is charged by the securities company, and both trading and buying need to be paid. Transfer fees is collected by the stock exchange.