Fund companies can be divided into private fund companies and Public Offering of Fund companies, with different profit models.

Public Offering of Fund companies generally charge investors a certain amount of redemption fee and fund operation fee according to the contract, and the fees charged by different fund companies and products may be different. On the other hand, private equity fund companies will participate in performance sharing on the basis of charging a certain management fee.

In other words, whether Public Offering of Fund makes money or loses money, it will charge a fixed fee, while private equity funds are mainly divided from the money earned. The more they earn, the more the fund companies will be divided.

At the same time, different types of funds charge different fees. Class A funds deduct the subscription fee at the time of subscription and pay it in one lump sum, while Class C funds have no subscription fee, but charge the sales service fee according to the holding date.

For example, Xiao Li buys a class C fund of 10000 yuan and holds it for one year. When purchasing, he signed a contract with the fund company. No subscription fee is charged at the time of purchase, but a certain operating fee is charged, that is, the management fee is 0.7% per year, the custody fee is 0.2% per year, the fund sales service fee is 0.4% per year, and the selling fee is not charged for holding for more than 30 days. Then Xiao Li needs to pay 65438. The promoters of fund companies are institutions engaged in securities business, securities investment consulting, trust asset management or other financial asset management. People usually refer to funds mainly as securities investment funds. What is the role of fund management companies? The fund management company is the lead operator of this kind of partnership investment, but it is a corporate legal person, and its qualification must be approved by the China Securities Regulatory Commission. Fund companies, like other fund investors, are also partners. On the other hand, due to its leading operation, it is necessary to extract service fees (called fund management fees) from the assets jointly produced by everyone every year, manage investment experts (fund managers) who are responsible for transactions on behalf of investors, and help experts collect information and engage in research, and regularly announce the assets and income of the fund. Of course, these activities of fund companies are approved by the CSRC.