In recent years, with the rapid economic development in China, more and more people choose to invest in Public Offering of Fund. Before getting to know Public Offering of Fund, we need to know the charging methods in Public Offering of Fund. The charging methods in fund public offering are mainly divided into front-end charging and back-end charging. So, what are the characteristics of Public Offering of Fund's charging methods?

First, front-end charges

Front-end fees, also known as subscription fees, refer to the fees that investors need to pay when purchasing publicly issued funds. Generally speaking, the front-end handling fee rate is between 0.5% and 2%, which is related to the fund's sales organization. The front-end charging function is as follows:

1. The cost is reasonable. Compared with other charging methods, front-end charging is more reasonable. Investors can't count the expenses into the investment cost, which reduces the increase of the cost.

2. Long investment time. When buying Public Offering of Fund with front-end charges, investors can choose short-term or long-term investment according to their own needs. For long-term investment, the front-end cost is generally less.

3. Double charges for subscription and redemption. For the fees paid at the time of subscription, the corresponding fees need to be deducted at the time of redemption. Double charges are also easy for investors to feel opaque and need to have a full understanding of the charges.

Second, back-end charges.

Back-end fees, also known as redemption fees, refer to the fees that investors need to pay when redeeming publicly issued funds. Generally speaking, the rate of back-end charges is between 0% and 5%. The features of back-end billing are as follows:

1. It is expensive. For funds with back-end fees, investors need to pay higher fees when redeeming Public Offering of Fund. In addition, with the increase of investment time, the rate of back-end charges will also decrease.

2. The investment cycle is long. Unlike Public Offering of Fund, which charges front-end fees, choosing a fund with back-end fees needs to consider a long investment cycle. Because the shorter the investment cycle, the higher the back-end charging rate.

3. The commission incentive mechanism is weak. When the back-end charges, the income of fund sales staff is low, so there is no obvious commission incentive mechanism like the front-end charges.

To sum up, whether Public Offering of Fund chooses front-end charging or back-end charging, it has its unique characteristics. Investors need to make a comprehensive analysis of the historical performance, rate and other factors of the fund when purchasing, and make the best choice.