Fund handling fee refers to the fee paid to the sales organization when buying and selling funds, which is used to compensate the cost incurred by the fund sales organization in handling fund trading procedures. The handling fee is a one-time fee, that is to say, when buying and selling funds, the handling fee must be paid in one lump sum, and it does not need to be paid at other times. In order to prevent the sales organizations from jointly driving up the handling fee to harm the interests of investors, or excessively lowering the rate to cause vicious competition in the industry, many countries and regions generally set upper or lower limits on the handling fee of fund transactions.
The handling fee for buying and selling closed-end funds, commonly known as commission, is used to pay securities companies as the price of providing trading services. The upper limit of fund commission stipulated by laws and regulations is 0.3% of the amount of each transaction, and the lower limit of commission is RMB 5 yuan per transaction. Within this range, securities companies can determine their own expense ratio. Most brokers also charge 0.3% of the transaction amount as a handling fee for the trading of closed-end funds.
Redemption fee is a fee charged for redemption, mainly to reduce the losses caused by investors' excessive redemption to other investors in a short period of time, so it is often slightly punitive. After deducting the basic handling fee, all the redemption fees collected belong to the fund assets to compensate the investors who have not redeemed, and some open-end funds all use redemption fees as the basic handling fee, excluding the fund assets.
Funds have broad and narrow definitions. Broadly speaking, it refers to a certain amount of funds set up for a certain purpose, such as trust and investment funds, provident funds, retirement funds, etc. In a narrow sense, it refers to funds with specific purposes and uses. Usually, funds mainly refer to securities investment funds. The income of securities investment funds comes from the future, and the performance of the income is inseparable from the performance of the investment target market, which has certain risks.
According to different standards, securities investment funds can be divided into different types:
First, according to whether fund units can be increased or redeemed, they are divided into open-end funds and closed-end funds. Open-end funds are not traded on the market (as the case may be), but are purchased and redeemed by banks, brokers and fund companies, and the fund scale is not fixed; Closed-end funds have a fixed duration and are generally listed and traded on the stock exchange. Investors buy and sell fund shares through the secondary market.
Two, according to the different organizational forms, can be divided into enterprise funds and contract funds. A fund is established by issuing fund shares to establish an investment fund company, which is usually called a corporate fund; The establishment of fund managers, fund custodians and investors through fund contracts is usually called contractual funds. China's securities investment funds are all contractual funds.
Three, according to the different investment risks and benefits, can be divided into growth, income and balanced funds.
Four, according to the different investment objects, can be divided into stock funds, bond funds, money market funds, futures funds, etc.