In practice, there are two ways for open-end funds to collect subscription fees, one is called front-end fee, and the other is called back-end fee.

Front-end charge refers to the payment method of paying the subscription fee when you buy an open-end fund.

Back-end charge refers to the payment method of not paying the subscription fee when buying an open-end fund and then paying it when selling it.

Back-end fees are designed to encourage you to hold funds for a long time. Therefore, the rate of back-end fees will generally decrease with the growth of funds you hold. Some funds even stipulate that if the fund can be sold after a certain period of time, the back-end fee can be completely exempted. Mind you, the back-end charge is different from the redemption fee. Back-end charges, like front-end charges, are all a kind of subscription fees, but they are not paid when buying funds, but when selling funds. Therefore, if you buy a fund with back-end charges, you must pay the subscription fee in the form of back-end charges in addition to the redemption fee when you sell the fund.

5000/( 1+ your subscription rate) = your net fund value.