We need to know the calculation formula of fund subscription fee. The calculation of handling fee usually includes two aspects: first, the front-end subscription rate, that is, the fees that investors need to pay when purchasing fund shares; The second is the back-end subscription rate, that is, the fee to be paid when redeeming the fund share. Compared with the back-end subscription rate, the front-end subscription rate is more common. Generally speaking, the front-end subscription rate is calculated according to the percentage of the subscription amount, and the specific value will vary according to different funds.
Let's take the low-cost subscription fund of a fund company as an example to briefly explain the calculation formula of expenses. Assume that the front-end subscription rate of the fund company is 1%, that is, investors need to pay 1% of the subscription amount as a handling fee. Suppose an investor subscribes for a fund share of 65,438+00,000 yuan, then the handling fee he needs to pay is 65,438+00,000 yuan × 65,438+0% = 65,438+000 yuan. Although the handling fee seems to be very small, if long-term investment is considered, the handling fee will accumulate into a considerable amount.
How to choose a low-cost subscription fund? We can choose a fund with lower fees by comparing the rates of different fund companies. Some fund companies may introduce preferential handling fee policies, such as free handling fee for new users' first subscription, or decreasing handling fee after holding funds for a long time. We can choose index funds or ETF funds, because these funds usually have lower management fees and handling fees. The investment strategy of index funds is to track specific indexes, and its transaction cost is much lower than that of actively managed funds. ETF funds usually cost less, because they can be traded in the secondary market, and there is no need to apply for redemption through fund companies.
Choosing a low-cost subscription fund can not only save us money, but also improve our return on investment. Suppose we invest in two funds, one is fund A with higher fees, and the other is fund B with lower fees. If the income of these two funds is the same, then the actual income of fund A will be lower than that of fund B because of the higher handling fee. Moreover, during the fund holding period, the handling fee of Fund A will further reduce our income. Choosing a low-cost subscription fund can maximize our return on investment and bring greater benefits to our financial situation.
Handling fee is an important cost in the process of fund subscription, and it is a wise investment choice to choose low handling fee to subscribe for funds. We can choose a fund with lower fees by comparing the rates of different fund companies. Index funds and ETF funds are also options we can consider. Choosing a low-cost subscription fund will save us money and improve our return on investment. Let's pay more attention to the handling fee in our investment and bring greater benefits to our financial situation.