Front-end charge refers to the way investors pay subscription fees when buying open-end funds. Back-end charge refers to the payment method that investors do not pay the subscription fee when they buy open-end funds and wait until they sell them. Back-end fees are designed to encourage investors to hold funds for a long time. Therefore, the rate of back-end charges will generally decrease with the growth of holding funds. Some funds even stipulate that if investors can hold the fund for more than a certain period of time before selling, the back-end fee can be completely exempted. The front-end fee rate decreases with the increase of the amount, and the rate is low, which is suitable for short-term holding. The back-end charging rate decreases with time, and the rate is high, which is suitable for long-term holding. Front-end charging refers to the charging method of deducting subscription or subscription fees from subscription funds, which has the advantage of low rate. But the income share is small. Back-end charge refers to the charge method that is deducted from redemption funds at the time of redemption without charging subscription or subscription fee. The back-end charging rate is high, but the back-end charging decreases with time until it is zero. The back-end charging method is suitable for long-term holding, generally more than 2 years, which is slightly more cost-effective than the front-end charging.

Calculation of fund subscription share: If the investor chooses to pay the front-end subscription fee, the calculation method of subscription share is as follows: front-end subscription fee = subscription amount? Front-end subscription rate Net subscription amount = subscription amount-front-end subscription fee Subscription amount = Net subscription amount /T-day net fund share value If investors choose to pay back-end subscription fee, the calculation method of subscription amount is as follows: Subscription amount = Subscription amount /T-day net fund share redemption amount calculation: If investors choose to pay front-end subscription or subscription fee, the calculation method of redemption amount is as follows: Total redemption amount = Redemption amount? Net redemption fee of fund share on T day = total redemption amount? Redemption Rate Redemption Amount = Redemption Total-Redemption Fee If the investor chooses to pay the back-end subscription fee at the time of subscription, the calculation method of redemption amount is as follows: Redemption Total = Redemption Quantity? T-day fund share net back-end subscription fee = redemption share? Fund share net asset value on the subscription date? Corresponding to the back-end subscription rate, redemption fee = total redemption amount? Redemption rate Redemption amount = total redemption amount-back-end subscription fee-redemption fee