1, the way of back-end charging is more suitable for long-term investors, because the rate of back-end charging will generally decrease with the growth of held funds.
2. The way of charging in the previous period is more suitable for short-term investors. When investors redeem later, they will no longer consider deducting the relevant subscription fees, which is free and convenient. The front-end subscription rate generally decreases with the increase of subscription amount. In short, when choosing a fund, you can choose the charging mode according to your preference for holding time. If it is a fund traded on the floor, the transaction costs are not front-end and back-end, but the same charging model as stocks.
Extended data:
Precautions:
Pay attention to the later maintenance of the account. Although the fund is worry-free, it should not be left unattended. Always pay attention to the new announcements on the fund website, so as to have a more comprehensive and timely understanding of the funds you hold. Pay attention to buying funds and don't care too much about the net value of funds. In fact, the fund's income is only related to the net growth rate. As long as the fund's net growth rate stays ahead, the income will naturally be high.
Be careful not to like the new and hate the old, and don't blindly pursue new funds. Although the new fund has inherent advantages such as preferential prices, the old fund has long-term operating experience and reasonable positions, which is more worthy of attention and investment.
Baidu Encyclopedia-Front-end charges and back-end charges of funds