Money fund is loved by investors because of its advantages of low risk and low total cost. Purchaseable funds always have to pay some management fees, so what fees do money funds need to pay?

Generally speaking, the subscription fee and redemption fee of the money fund do not need to be paid by investors.

Investors need to pay management fees, sales service fees and custody fees when purchasing money funds. These expenses are accrued daily from the fund assets, that is to say, these expenses have been deducted from the net value of the fund published every day, showing considerable income and no need to pay again.

The following is a description of these three expenses:

Management cost

Management fees are paid by investors to fund managers, which is the source of income for fund managers. It is calculated according to a certain proportion of the net assets of the fund.

sales service charge

The purpose of the sales service fee is to pay the marketing expenses of the fund, the commission to the sales channels and the service expenses of the fund share holders. Calculated by the fund manager according to the contract and relevant laws and regulations.

trustee fee

Funds raised by fund companies or institutions are not kept by themselves, but entrusted to commercial banks, resulting in custody fees.