It should be noted that the charging standard of each fund is different, and investors can check the specific charging standard in the fund trading rules.
According to different standards, securities investment funds can be divided into different types:
(1) According to whether the fund unit can be increased or redeemed, it can be 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.
(2) According to different organizational forms, it can be divided into corporate funds and contractual 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.
(3) According to the different investment risks and returns, it can be divided into growth funds, income funds and balanced funds.
(4) According to different investors, it can be divided into bond funds, stock funds, money funds and hybrid funds.
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.
There are generally three kinds of fees for purchasing open-end securities investment funds: one is to pay "subscription fee" when purchasing newly established funds; Second, the purchase of old funds needs to pay a "subscription fee"; Third, you need to pay a "redemption fee" when the fund is redeemed. The general subscription rate is 1.2%, the subscription rate is 1.5%, and the redemption rate is 0.5% (money market funds are free).
The handling fee paid when buying an open-end fund is generally called subscription fee, and the handling fee paid when selling is called redemption fee.
According to the regulations of relevant departments, the subscription fee of domestic open-end funds shall not exceed 5% of the subscription amount; The redemption fee shall not exceed 3% of the redemption amount. However, the subscription rate of domestic open-end funds is generally below 1.8%, and the redemption rate is mostly 0.5%.
Generally speaking, the subscription fee ratio of the fund is not fixed, but decreases with the increase of the fund scale.
Many fund management companies take 6,543,800 fund shares as the dividing line. If you subscribe for more than 6,543,800 fund shares, you can apply a relatively low subscription rate.
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.
Before buying an open-end fund, you can read the contract and prospectus of the fund carefully to understand the specific collection principles of its subscription fee and redemption fee.