How to deduct the fund operating expenses?

For those who want to invest in funds, it is very important to understand the deduction method of fund operating expenses. Fund operating expenses include fund management fees, sales service fees and custody fees, which are necessary for the daily operation of fund companies. Once you know the real deduction method, you may be able to invest in the fund more wisely, thus improving the investment efficiency. This paper will analyze how to deduct the operating expenses of the fund from many angles.

Deduction method of fund management fee

Fund management fees are the expenses required by fund companies to manage funds, including fund managers' salaries, research fees and management fees. Fund companies earn income by deducting management fees from fund assets.

There are generally two ways to deduct fund management fees: one is to deduct according to the proportion of net asset value, which is the so-called management rate. For example, if the management fee of a fund is 1.2% and the net asset value of the fund is 1 billion yuan, the annual management fee is 1.2%x 1 billion yuan =1billion yuan. Another way is to deduct the actual operating expenses, that is, to calculate according to the actual expenditure amount.

Deduction method of sales service fee

Sales service fee refers to the fee paid by the fund company to the sales organization, including channel fee and marketing fee. There are generally two ways to deduct sales service fees: one is front-end charges, and the other is back-end charges.

Front-end charge means that when purchasing a fund, investors need to pay a certain percentage of management fees, which will be deducted directly from the investors' funds when purchasing the fund. For example, the front-end sales service rate of a fund is 3%. If an investor buys a fund with a value of 1 1,000 yuan, the actual payment amount is 1 1,000 yuan -3% x 1 1,000 yuan =970 yuan.

Back-end fees refer to the sales service fees charged by investors after holding the fund for a certain period of time. For example, in a fund, investors only charge 1% for sales service for more than one year, and 0.8% for more than two years. When investors redeem the fund, the sales service fee will be automatically deducted from the fund share.

Deduction method of custody fee

Custody fee refers to the fee that a fund company needs to pay to entrust a bank to keep the fund assets. Custody fees are generally deducted according to the proportion stipulated by the bank, that is, calculated according to the proportion of net assets, which is generally between 0. 1%-0.2%.