Fund management fee refers to the fee charged by the fund manager to manage the fund assets. Fund custody fee refers to the fee charged to the fund by the fund custodian for providing custody services for the fund. The fund sales service fee refers to the expenses deducted from the fund assets, such as paying the commission of the sales agency and the fund manager's fund marketing advertising fee, promotion activity fee, holder service fee, etc.
Types of fund expenses
The following expenses related to the fund can be charged from the fund property:
1. Fund manager management fee.
2. Custody fee of the fund custodian. 3. Sales service fee.
4. The fund contract takes effect. 5. Accountant fees and attorney fees after the fund contract becomes effective.
6. General meeting expenses of fund share holders.
7. Securities transaction fees of the Fund.
8. Other expenses that can be charged from the fund property according to the relevant provisions of the state and the provisions of the fund contract. 1. Accrual standard. The fund management fee rate is usually inversely proportional to the fund size and directly proportional to the risk. The larger the fund scale, the lower the fund management fee rate; The higher the degree of fund risk, the higher the fund management fee rate. Different types of funds, different countries and regions have different management rates. However, in terms of fund types, the management rate of securities derivative funds is the highest. For example, the management rate in the warrant fund is about1.5% ~ 2.5%; Equity funds are in the middle, about1%~1.5%; The bond fund is about 0.5% ~1.5%; Money market funds are the lowest, and the management fee is about 0.25% ~ 1%. The annual management fees of several funds announced by China Hong Kong Fund Association are: the annual rate of bond funds is 0.5% ~ 1.5%, and the annual rate of stock funds is 1% ~ 2%. In developed countries and regions such as the United States, the annual management fee of the fund is usually around 1%. But in some developing countries or regions, the figure is higher. For example, the annual fund management fee in Taiwan Province Province is generally 1.5%. In some developing countries or regions, the annual rate of return of fund management even exceeds 3%. At present, most of the stock funds in China accrue fund management fees according to the ratio of 1.5%, while the management fees of bond funds are generally lower than 1%, and the management fees of money market funds are 0.33%.
2. The proportion of fund custody fee is related to the fund size and fund type. Usually, the larger the fund scale, the lower the fund custody fee rate. The proportion of custody fees charged by emerging market countries and regions is relatively high. The annual rate of fund custody is usually around 0.2% internationally, 0.2% in the United States and 0.25% in Chinese mainland, Taiwan Province and Hongkong. At present, China's closed-end funds accrue fund custody fees at the rate of 0.25%; Open-end funds are accrued according to the proportion agreed in the fund contract, usually less than 0.25%; The custody rate of stock funds is higher than that of bond funds and money market funds. At present, only money market funds and some bond funds charge sales service fees. The rate is around 0.25%. Funds that charge sales service fees usually do not charge subscription fees. (2) Fund transaction costs
3. Fund transaction costs refer to the related transaction costs incurred when the fund conducts securities transactions. At present, the transaction costs of China's securities investment funds mainly include stamp duty, trading commission, transfer fees, handling fee and securities management fee. The trading commission is collected from the fund by the securities company according to a certain proportion of the transaction amount, and the stamp duty, transfer fees, handling fee and securities management fee are collected by the registered company or the exchange according to the relevant regulations. Those who participate in inter-bank bond transactions are also required to pay inter-bank account service fees to China Government Securities Depository and Clearing Co., Ltd., transaction fees and other service fees to the National Interbank Funding Center (III) fund operation fees.
Fund operating expenses refer to the expenses that should be borne by the fund to ensure the normal operation of the fund, including audit fees, attorney fees, annual listing fees, information disclosure fees, dividend handling fees, holders' general meeting fees, account opening fees, bank transfer fees, etc. According to the relevant regulations, if these expenses affect the fifth place after the decimal point of the net fund share value, that is, the expenses incurred exceed one hundred thousandth of the net fund value, they should be included in the fund profit and loss by withholding or deferring. If the expenses incurred do not affect the fifth place after the decimal point of the net value of the fund share, that is, the expenses incurred are less than 1/100,000 of the net value of the fund, they shall be directly included in the profit and loss of the fund when incurred.