Fund expenses

Closed-end funds are listed and traded on Shenzhen-Shanghai Stock Exchange, and investors can buy and sell them as long as they go to the securities business departments of various securities companies. The process of buying and selling is the same as buying and selling stocks, but the handling fee for buying and selling funds is lower. Generally, only 0.25% commission is required for trading, and stamp duty is not required.

Open-end funds are generally not listed on exchanges, but sold through fund managers and their designated sales outlets. Banks and securities companies are the most commonly used sales channels for open-end funds. The main expenses for investors to buy and sell open-end funds vary from fund to fund, and the same fund will also vary according to the trading volume of investors. But there is basically an upper limit and calculation method, which will be announced when the fund is raised. Specifically. The transaction costs involved in open-end funds mainly include:

1. Initial subscription fee: refers to the subscription fee when the fund is first issued. For example, the initial subscription rate of Huaan Innovation Fund is determined according to different subscription amounts: the subscription rate is divided into two grades: 1.2% and 1.5%; The one-time subscription amount is 1 0,000-1 0,000,000 yuan (including 1 0,000 yuan, excluding10,000,000 yuan). The one-time subscription amount is higher than100000 yuan (including100000 yuan), and the subscription rate is 65438+ 0.2% of the subscription amount. The subscription rate of "Southern Steady Growth Fund" is 1% regardless of its size.

2. Subscription fee: refers to the "daily subscription" fee after the fund starts trading, which does not exceed 5% of the subscription amount according to the provisions of the Pilot Measures for Open-end Securities Investment Funds. There are different rates according to the transaction volume. For example, the subscription amount of Southern Steady Growth Fund is as follows: subscription amount (m) subscription rate M < 1 10,000 2.0% 1 10,000 ≤ m < 5 million1.8% 5 million ≤ M < 1 10,000/0.5%. Kloc-0/.5%: If the one-time subscription amount is higher than100000 yuan (including100000 yuan), the subscription rate is 65438+ 0.2% of the subscription amount.

3. Redemption fee: According to the Pilot Measures for Open-ended Securities Investment Funds, it shall not exceed 3% of the subscription amount and shall be determined by the fund management company.

4. Dividend reinvestment fee: refers to the subscription fee that investors have to pay to reinvest the distribution income obtained from open-end funds in this fund. In order to encourage investors to continue investing, general investment funds charge low or no subscription fee for this fee.

5. Conversion fee: refers to the fee paid by investors to convert one invested fund into another fund between different funds managed by the same fund manager. For fund families that issue multiple funds, investors can choose to switch between multiple fund varieties in the same series, which brings the problem of switching costs. At present, most funds do not charge conversion fees.

Generally speaking, the transaction cost of closed-end funds is obviously lower than that of open-end funds.

Investment funds must pay some fees in the course of operation. These expenses are fund expenses, which constitute the income sources of fund managers, custodians and other parties. The related expenses of investing in open-end funds include direct expenses and indirect expenses. Direct costs include subscription fees, subscription fees and redemption fees or trading commissions of closed-end funds generated in the transaction process, which are directly borne by investors; Indirect expenses are expenses deducted from the net value of the fund as stipulated by laws, regulations and fund contracts, including management fees, custody fees and operation fees. Fund management fee Fund management fee refers to the fee paid to the fund manager who actually uses the fund assets and provides professional services for the fund, that is, the fee charged by the manager for managing and operating the fund. Fund custody fee Fund custody fee refers to the fee charged by the fund custodian for providing services to the fund. Custody fees are usually drawn according to a certain proportion of the fund's net asset value, calculated and accumulated daily, and paid to the custodian monthly. This fee is also paid from the fund assets and does not need to be charged to investors separately. Fund liquidation expenses Fund liquidation expenses refer to the expenses required for liquidation when the fund is terminated, which are drawn from the fund assets according to the actual expenses incurred during liquidation. Fund operating expenses Fund operating expenses include paying CPA fees, attorney fees, holding annual meetings, printing and producing interim and annual reports, and handling fees for buying and selling securities. These fees and expenses are paid as the operating cost of the fund. Operating expenses account for a small proportion of the net asset value, which is usually determined in advance in the fund contract and paid according to relevant regulations.