The expenses of the Fund include handling fee and operation fee, in which handling fee refers to subscription fee and redemption fee, and operation fee refers to management fee, custody fee and sales service fee, so the operation fee of the Fund does not include subscription fee and redemption fee.

The management fee is collected by the fund manager, regardless of the profit and loss of the fund. The general fund management fee is related to the risk of the fund. The higher the risk, the higher the management fee. Some funds may charge excessive management fees after exceeding a certain income.

Custody fees are charged by commercial banks. Because the assets of the fund need to be supervised by the custodian bank, the bank will charge a certain custody fee, which is generally about 0.2% per year.

Generally, only sales expenses are charged to Class C funds, because Class C funds do not charge subscription fees, but they have to bear the sales expenses.

Custody fee, management fee and sales service fee are charged on a daily cumulative basis and directly deducted from the total assets of the fund, and investors do not need to pay separately when selling the fund.

The operation of the Fund includes all relevant links of fund operation activities such as fund marketing, fund raising, fund investment management, fund asset custody, fund share registration, fund valuation and accounting, and fund information disclosure.

Fund operation mode refers to the working mode that the fund should have in the operation and operation process. Can be closed and opened. In order to standardize the activities of securities investment funds, protect the legitimate rights and interests of investors and related parties, and promote the healthy development of securities investment funds and the securities market, Article 45 of Chapter IV of People's Republic of China (PRC) Securities Investment Fund Law regulates and stipulates the operation mode of funds.

According to different standards, securities investment funds can be divided into different types:

(1) According to whether the fund unit can be increased or redeemed, it can be divided into open-end funds and closed-end funds. Open-end funds are not traded on the market (as the case may be), but are purchased and redeemed by banks, brokers and fund companies, and the fund scale is not fixed; Closed-end funds have a fixed duration and are generally listed and traded on the stock exchange. Investors buy and sell fund shares through the secondary market.

(2) According to different organizational forms, it can be divided into corporate funds and contractual funds. A fund is established by issuing fund shares to establish an investment fund company, which is usually called a corporate fund; The establishment of fund managers, fund custodians and investors through fund contracts is usually called contractual funds. China's securities investment funds are all contractual funds.

(3) According to the different investment risks and returns, it can be divided into growth funds, income funds and balanced funds.

(4) According to different investors, it can be divided into bond funds, stock funds, money funds and hybrid funds.