First of all, I want to tell you that these two codes represent Bank of Communications Selection~~~Don’t worry!

It’s just that one is front-end charging and the other is back-end charging!

Front-end charges refer to the subscription fee deducted based on the front-end subscription rate and subscription amount when subscribing for a fund, and a redemption fee is charged when redeeming.

Back-end charges mean that no subscription fee is charged when subscribing. When redeeming the fund, the subscription fee will be deducted based on the back-end subscription rate and the net value of the fund at the time of subscription and the corresponding shares.

Generally back-end charges decrease as the holding period increases.

For example, the net value of the fund on the day you subscribe for the fund is 1, the net value of the fund on the day of redemption is 1.2, the front-end subscription fee is 1.5%, the back-end subscription fee is 1.8%, the redemption fee is 0.5%, and the subscription is 10,000 yuan.

1. If the front-end charging method is adopted, fund shares = 10000* (1-1.5%)/1 = 9850 shares, so the funds obtained when redeeming = 1.2*9850* (1-0.5%) = 11760.9 yuan, and the income is 1760.9 yuan

.

2. If the back-end charging method is adopted, the fund share = 10000/1 = 10000 shares, the funds received during redemption = 1.2*10000* (1-0.5%)-1*10000*1.8% = 11760 yuan, and the income is 1760.9 yuan

.

3. If you hold it for 1 year, the subscription fee for the back-end charging method will generally be reduced, for example, it may be reduced to 1.5%. If you hold it for 2 years, it may be reduced to 1%. For details, please check the regulations of the fund company.

Taking Fuguo Tianrui (100023) as an example, investors can choose to pay subscription fees when subscribing for this fund or redeeming this fund.

What investors choose to pay when subscribing is called front-end subscription fee, and what investors choose to pay when redeeming is called back-end subscription fee.

When investors choose to pay front-end subscription fees, a proportional rate will be used based on the subscription amount.

If an investor makes multiple subscriptions within a day, the applicable rates will be calculated separately for each transaction.

The specific rates are as follows: Subscription amount (including subscription fee) Front-end subscription rate 1.5% for less than 1 million yuan (inclusive) 1.2% for more than 1 million yuan (inclusive) The maximum fee for a single subscription is 50,000 yuan. Investors choose to automatically reinvest dividends.

There is no subscription fee for shares.

When investors choose to pay back-end subscription fees, a proportional rate will be used based on the subscription amount. The back-end subscription fee for holding time of less than one year is 1.8% of the subscription amount. The rate decreases according to the holding time, with the lowest being zero.

The specific rates are as follows: Holding time rate Within 1 year (inclusive) 1.8% 1 year to 3 years (inclusive) 1.2% 3 years to 5 years (inclusive) 0.6% More than 5 years 0 So, in other words, if

When purchasing a fund, if you choose back-end payment and hold it for more than 5 years, you can save the subscription fee.