When buying funds, are there any charges other than the handling fee?
One of the differences between buying a fund and building your own portfolio is that the fund has more fees to pay. Some, like the handling fee, are charged directly to you, and some, like the management fee, are deducted directly from the net worth.
In this article, Mr. Market sorts out an explanation of the various costs and fees for buying a fund, and how to check the fees.
First of all, there are four main types of fees for purchasing funds: handling fees, account management fees, manager fees, and custody fees.
Handling fee, charged at the time of purchase, 3% for stocks, 1.5% for bonds
Account management fees, also known as trust management fees, are charged at an annual redemption rate of 0.2%. Only available if you buy from a bank
Management fee (manager fee), which is reflected in the net worth, mostly in the range of 1% to 2.5% per year. Bond funds are lower than stocks, ETFs are the lowest
Custody fee, which is reflected in equity, is approximately 0.2%.
Publicly priced: 3% for stocks, 1.5% for bonds
What is the cost of balancing (buying stocks and bonds)? As with inventory types, there is a 3% service fee
There will be different discounts according to different channels.
There are usually different service charges for a single purchase and a recurring fixed amount. Regular amounts are usually discounted more.
Currently the lowest discount on the online fund platform.
1.99% stocks, 2.99% bonds, or about 0.6% stocks, 0.45% bonds. For a recurring fixed amount, the best discount is 1% for life, or 0.3%. To get the discount, you can read it like this: Buy a coupon with 0 fund handling fee
It should be noted that 0.2% does not seem to be high, but it is considerable if accumulated over many years.
For example, if you buy 10 years, you will have to deduct 2% when you redeem it. If you apply for 10 million yuan, it will be very painful to deduct 200,000 yuan in 10 years.
Also, it’s important to note that if the bank has a minimum account management fee, it may not be worthwhile if the amount is too small.
For example, the lower limit is 500 yuan. If you apply for 50,000 yuan and redeem it after one year,
The original 0.2% fee was 100 yuan, but it became 500 yuan, which is 1%
Some banks offer discounts on account management fees from time to time. For example, the account management fees for the first two years are free.
They wouldn’t have such a fee if it wasn’t purchased from the bank.