Fund subscription refers to the behavior of investors buying fund shares at a certain amount. It is a way for investors to participate in fund operation and share fund income by purchasing funds. Fund subscription is an important part of fund sales and the first step for investors to invest in funds.
Fund subscription fee refers to a kind of fee that investors need to pay to fund companies or sales organizations when purchasing fund shares. It is a handling fee charged by a fund company in order to maintain the normal operation of the fund and obtain profits.
First, the process of fund subscription
Fund subscription is generally divided into the following steps:
1. fund selection: investors choose appropriate fund products according to their risk tolerance, investment objectives and expected returns.
2. Fill in the subscription form: investors need to fill in the fund subscription form and provide information and subscription amount and other related information.
3. Payment of subscription fees: Investors need to pay the corresponding subscription fees according to the provisions of the fund contract.
4. Confirmed share: After receiving the subscription amount, the fund company or sales organization will calculate the fund share purchased by the investor according to the subscription amount.
5. Issue a confirmation letter: The fund company or sales organization will send a subscription confirmation letter to the investor to confirm that the investor has successfully subscribed for the fund share.
Second, the role of the fund subscription fee
The fund subscription fee mainly has the following functions:
1. fund operation and maintenance: the fund subscription fee is the fee charged by the fund company or sales organization to maintain the normal operation of the fund. These expenses include the management expenses of the fund manager, the marketing expenses of the fund and the commission of the sales organization.
2. Reduce the liquidity risk of investors: Fund subscription fees can help fund companies reduce the liquidity risk of investors. When the subscription amount of the fund share is too large, the fund company can reduce the subscription behavior of investors by increasing the subscription fee, thus avoiding the increase of operational risk caused by the rapid expansion of the fund scale.
3. Reward fund sales: part of the fund subscription fee will be used as a commission to the sales organization, thus encouraging it to actively promote the fund products. This will help to increase the sales volume and scale of the fund and improve the profitability of the fund company.
4. Collect investor management fees: part of the fund subscription fees will be used as the management fees of the fund management company. The fund management company is responsible for the operation and management of the fund and needs to pay the salaries and research expenses of relevant personnel.
Third, the calculation method of fund subscription fee
Fund subscription fee generally has two calculation methods:
1. Front-end charge: Investors need to pay a certain subscription fee when purchasing fund shares. For example, if the front-end subscription rate of the fund is 1%, investors need to pay an additional 100 yuan as subscription fee when purchasing a fund with 100 yuan.
2. Back-end charges: Investors need to pay a certain percentage of redemption fees to redeem fund shares. If the subscription rate of the back-end fund is 2%, investors need to pay 200 yuan as redemption fee for redeeming the fund of 6,543,800 yuan.
Four, the influencing factors of fund subscription fee
The specific amount and calculation of the fund subscription fee are influenced by many factors, including the following aspects:
1. Fund type: Different types of foundations have different subscription rates. For example, the subscription rate of equity funds is generally low, while the subscription rate of monetary funds is generally high.
2. Fund company policy: Different fund companies will determine the subscription rate according to their own operating strategies and market competition. Some well-known fund companies may have higher subscription rates.
3. Commission of the sales organization: As the sales channel of the fund, the sales organization will get the fund subscription fee as a commission according to a certain proportion. The commission ratio between different sales organizations will be different.
Conclusion: Fund subscription is a way for investors to participate in fund operation and share fund income by purchasing fund shares. Fund subscription fee is a kind of fee that investors need to pay to fund companies or sales organizations when purchasing fund shares. Investors need to know the calculation method and influencing factors of fund subscription fee when making fund subscription, and choose appropriate fund products according to their investment objectives and risk tolerance.