1. Calculation method of purchase expenses When purchasing funds, the expenses to be paid usually include front-end sales expenses and subscription expenses. Front-end sales expenses refer to the expenses paid to the sales organization when purchasing funds, usually calculated according to a certain proportion, such as 1% or 2%. The subscription fee refers to the fund company's expenses for managing and operating the fund, which is usually calculated according to a certain proportion, such as 0.5% or 1%. The buying fee is calculated as follows:
Buying fee = buying amount × (front-end sales fee+subscription fee)
2. Calculation method of sales expenses When selling funds, the expenses to be paid usually include back-end sales expenses and redemption expenses. Back-end sales expenses refer to the expenses paid to the sales organization when the fund is raised, usually calculated according to a certain proportion, such as 1% or 2%, but the rate will gradually decrease with the extension of the holding period. Redemption fee refers to the management and operation expenses of the fund company, which is usually calculated according to a certain proportion, such as 0.5% or 1%. The calculation method of sales expenses is as follows:
Selling fee = selling amount × (back-end selling fee+redemption fee)
3. Free of handling fees In some cases, the purchase or fund may not need to pay handling fees. For example, in order to attract more investors, some fund companies have launched some activities free of charge. During the activity, the purchase or fund can be exempted from handling fees. Some fund companies also provide redemption fee-free policies for investors who hold them for a certain period of time. However, it should be noted that these activities and policies usually have certain conditions, and investors need to carefully understand the relevant regulations.
4. Impact of handling fee on investment income Handling fee is the fee that investors need to pay when purchasing and fund, which directly affects investors' income. The handling fee paid at the time of buying will reduce the investment amount, and the handling fee paid at the time of selling will reduce the selling amount. The level of handling fee has a great influence on investment income. Investors should choose appropriate funds according to their investment amount and investment cycle, and consider the impact of handling fees on income.
5. Comparison between handling fees and other expenses In addition to handling fees, fund investment may also involve other expenses, such as management fees and custody fees. Management fee is the fee charged by the fund company for managing and operating the fund, which is usually calculated according to a certain proportion, such as 1% or 2%. Custody fee refers to the fee charged by the custodian institution of a fund company for providing fund custody services, usually calculated according to a certain proportion, such as 0. 1% or 0.2%. Comparatively speaking, the handling fee usually has a more direct impact on investors, because it directly affects the cash flow at the time of purchase, while the management fee and custody fee indirectly affect investors' income by reducing the net value of the fund.
Fund handling fee is the fee that needs to be paid when purchasing and applying for funds. The buying fee includes front-end sales fee and subscription fee, and the selling fee includes back-end sales fee and redemption fee. Investors should choose appropriate funds according to their investment amount and investment cycle, and consider the impact of handling fees on income. We should also pay attention to the comparison between handling fees and other expenses in order to fully understand the cost of fund investment.