Indirect expenses are expenses deducted from the net value of the fund as stipulated by laws, regulations and fund contracts, including management fees, custody fees and operation fees.
1) subscription fee and subscription fee
Subscription fee refers to the handling fee paid by investors when they purchase fund shares during the fund issuance and raising period. At present, the common calculation method of subscription fee in China is: subscription fee = subscription amount × subscription rate, net subscription amount = subscription amount-subscription fee; The subscription rate is usually around 1%, and there are corresponding discounts with the size of the subscription amount.
Subscription fee refers to the handling fee paid by investors when they buy fund shares from fund managers during the fund's existence. At present, the common calculation method of subscription fee in China is: subscription fee = subscription amount × subscription rate, and net subscription amount = subscription amount-subscription fee. China's "Pilot Measures for Securities Funds of Open-end Investment Funds" stipulates that open-end funds can charge subscription fees, but the subscription rate shall not exceed 5% of the subscription amount. At present, the subscription rate is usually around 1%, and there are corresponding discounts with the size of the subscription amount.
The purpose of collecting subscription fees and subscription fees for open-end funds is mainly used for commission and publicity and marketing expenses of sales organizations.
2) Redemption fee
Redemption fee refers to the handling fee paid by investors who already hold fund shares to fund managers during the existence of open-end funds. The purpose of redemption fee design is mainly to arrange a compensation mechanism for other fund holders. Usually, redemption fee is included in fund assets. China's "Pilot Measures for Securities Funds of Open-end Investment Funds" stipulates that open-end funds can charge redemption fees, but the redemption rate shall not exceed 3% of the redemption amount. At present, the redemption rate is usually below 1%, and there are corresponding discounts with the length of holding period.
3) switching costs
The conversion fee refers to the fee that investors need to pay to convert their investments between different open-end funds managed by the same fund management company according to the provisions of the fund manager. The fund conversion fee can be calculated by rate method or quota method; When adopting the rate method, the calculation should be based on the net asset value of the fund unit, and the rate should not be higher than the subscription rate. Usually, this expense rate is very low, generally only a few tenths of a percent. The existence of switching fees is somewhat arbitrary, which is closely related to the nature of fund products and the strategy of fund management companies. For example, there is no conversion fee for the conversion between sub-funds within umbrella funds, and some fund management companies stipulate that there is no conversion fee for the conversion within a certain number of conversions, or there is no conversion fee for the conversion from bond funds to stock funds.
4) Fund management fee
Fund management fee refers to the fee paid to the fund manager who actually uses the fund assets and provides professional services for the fund, that is, the remuneration received by the manager for managing and operating the fund. The annual rate of fund management fee is calculated according to a certain proportion of the net asset value of the fund, and the fund management fee varies greatly with different risk-return characteristics, such as 0.33% for money market funds, 0.65% for bond funds and 0/%~1.6% for stock funds. The management fee is accrued daily and paid by the custodian to the fund manager in one lump sum from the fund assets at the end of the month.
5) Fund custody fee
Fund custody fee refers to the fee charged by the fund custodian for providing services to the fund, such as the fee drawn by the bank for keeping and disposing of the trust property of the fund. Custody fees are usually drawn according to a certain proportion of the fund's net asset value, which is usually 0.25% at present. They are accumulated daily and paid to the custodian monthly. This fee is also paid from the fund assets and does not need to be charged to investors separately.
6) Dividend reinvestment fee
Refers to the expenses that investors need to pay to reinvest the distribution income of open-end funds in funds. Dividend reinvestment expenses can be calculated by rate method or quota method; When using the rate method, it should be calculated on the basis of the net asset value of the fund unit, and the rate should not be higher than the subscription rate. Under normal circumstances, dividends are free of charge.
7) Fund liquidation expenses
Fund liquidation expenses refer to the expenses required for liquidation when the fund is terminated, and are extracted from the fund assets according to the actual expenses incurred during liquidation.
8) Fund operating expenses
The operating expenses of the Fund include payment of CPA fees, attorney fees, annual membership fees, printing and production fees for interim and annual reports, and handling fees for buying and selling securities. These fees and expenses are paid as the operating cost of the fund. Operating expenses account for a small proportion of the net asset value, which is usually determined in advance in the fund contract and paid according to relevant regulations.
9) taxes and fees
Generally speaking, fund taxes include income tax, transaction tax and stamp duty. At present, China does not levy income tax on individual investors' fund dividends and capital gains, but the investment income obtained by enterprise investors should be incorporated into the taxable income of enterprises to levy enterprise income tax. In view of the fact that the investment object of this fund is the securities market, the fund manager has paid various tax rates stipulated by the stock exchange when investing, and investors do not need to pay transaction tax when purchasing and redeeming open-end funds.
In order to support the development of open-end funds, the Ministry of Finance and State Taxation Administration of The People's Republic of China have given four preferential tax policies to open-end securities investment funds approved by the China Securities Regulatory Commission in the Notice on Tax Issues Concerning Open-end Securities Investment Funds. These four preferential policies are:
First, before the end of 2003, enterprise income tax and business tax will be temporarily exempted from the difference income of fund managers using funds to buy and sell stocks and bonds;
Second, individual income tax will not be levied on the difference income obtained by individual investors from purchasing and redeeming fund shares until the personal income tax on the difference income from buying and selling stocks is resumed;
Third, when listed companies, bond issuing enterprises and banks pay the above income to the fund, they withhold and pay 20% personal income tax on the stock dividend income, bond interest income and savings deposit interest income obtained by the fund; Personal income tax and enterprise income tax will not be levied on the income obtained by investors (including individual and institutional investors) from fund distribution;
Fourth, stamp duty will not be levied on investors' subscription and redemption of fund shares for the time being.
10) Other non-transaction expenses
Including account opening fee, transfer registration fee (transfer custody fee) and so on. The account opening fee refers to the fee paid by the investor when opening a fund account; The conversion registration fee (re-custody fee) refers to the fee paid by investors when handling the re-custody business of fund shares between trading accounts of different sales organizations; Account maintenance fee refers to the fee charged by the fund manager to investors for managing and maintaining their fund accounts.
The above fees are charged at a fixed amount. Fund managers can set different fee levels suitable for investors according to certain standards, but the specific treatment methods must be specified in the prospectus.