On-exchange funds refer to securities investment funds that are listed and traded on stock exchanges like stocks. Generally, on-exchange funds include closed-end funds, LOF funds, ETF funds and hierarchical funds. Open-end funds such as currency funds and bond funds are over-the-counter funds. So are there any management fees when trading on-site funds? Let’s find out together.

Do on-exchange funds have management fees?

On-exchange funds also have management fees. Both on-exchange funds and over-the-counter funds need to charge management fees. This management fee is It is withdrawn directly from the fund assets every day, usually at a rate of 0.5%. In addition to management fees, on-site funds also have custody fees. The custody fees are generally around 0.1%. The fee regulations vary depending on the fund management company. The sales and service fees for funds depend on the regulations of the fund company. Some on-market funds will not charge sales and service fees.

The fees for on-site funds do not require additional payment by investors. They are directly deducted from the fund assets. Therefore, the net value of the fund that investors see on each announcement date has already deducted the corresponding fees. . Unlike over-the-counter funds, fees for on-exchange funds are relatively low.

Generally, fund fees will be explained in the fund prospectus. Investors investing in funds can read the fund prospectus carefully to understand clearly.