What fund subscription fee? How to understand the fund subscription fee? What is the subscription share of the fund? The following small series takes you to learn!

What is the subscription fee for the fund?

During the fund-raising period (the objects discussed in this paper are all open-end funds), investors' behavior of buying fund shares is called subscription, while after the fund contract takes effect, the behavior of applying for buying fund shares is called fund subscription. Investors generally need to pay a certain proportion of fees when subscribing, which is called subscription fee, and this fee will be used for various expenses incurred in the process of fund marketing, sales and registration.

The Measures for the Administration of Fund Sales (Revised Draft) does not specifically limit the subscription rate of funds, but stipulates that fund managers should explain the rate standard and fee calculation method in the fund contract, prospectus or announcement. In practice, fund managers will set different subscription rates for different fund types, different subscription amounts and different holding years.

What is the subscription share of the fund?

When the fund subscribes, it generally adopts the method of share subscription, so how to calculate the subscription amount and buy the fund share? The subscription amount of a fund is divided into two parts: subscription fee and net subscription amount. The subscription amount will generate interest during the fund raising period, which is called subscription interest. Subscription interest will be converted into fund shares at the end of fund raising, and the share converted by the sum of net subscription amount and subscription interest is the subscription share.

For example, if an investor invests 1 10,000 yuan in the raising period of Fund A, the corresponding subscription rate is 1.2%. At the same time, the subscription funds will generate interest income from 3 yuan during the raising period, and the initial face value of the fund share is 65,438+0 yuan. Then:

The net subscription amount =10000/(1+1.20%) = 9881.42 yuan.

Subscription fee =10000-9881.42 =118.58 yuan.

Subscription share = (9881.42+3)/1.00 = 9884.42 copies.

How to understand the subscription rate of funds

In practice, fund managers will charge different subscription fees according to different fund types. At present, the subscription fees of domestic partial stock funds and QDII funds are generally between 1%- 1.5%, while the subscription fees of bond funds are generally below 1%. Money market funds generally do not charge subscription fees, but they are allowed to charge a certain percentage of sales service fees.

Fund managers will also set different rates according to different subscription amounts. Generally speaking, the higher the subscription amount, the greater the preferential margin. For example, Fund A stipulates that the subscription amount below 654.38+0000 is 654.38+0.2%, the subscription amount between 654.38+0000 and 5 million is 0.6%, and the subscription amount above 5 million is charged with a fixed fee of 654.38+0.

In addition, the manager can also set up front-end charging and back-end charging modes: front-end charging refers to paying subscription fees when purchasing fund shares; Back-end charging refers to the charging mode of not charging when subscribing for fund shares and paying the subscription fee when redeeming fund shares. Different subscription fees are charged for different subscription amounts, corresponding to the front-end fees, and different subscription fees are charged for different holding times, corresponding to the back-end fees. The longer the holding time, the lower the subscription fee, and the subscription fee will gradually decrease with the extension of holding time until it is zero. For example, Fund A agrees to charge different fees for different subscription amounts, and at the same time agrees to charge different fees for investors who choose back-end fees. The subscription rate for holding 1 year or less is 1.6%, for holding 1 to 3 years, 1%, and for holding for 3 to 5 years, the subscription rate is 0.4%, but there is no subscription fee for holding for more than 5 years.

To sum up, the fund type, subscription amount and holding time are all factors that affect the fund subscription fee. Investors should carefully check the agreement on subscription rate in the prospectus when subscribing for funds. When other conditions in similar funds are equal, you can choose a fund with a lower rate. In addition, as an expert wealth management product, the fund is suitable for medium and long-term investment, and medium and long-term investment can enjoy certain back-end fee concessions.