If the same fund has both front end and back end charges

1.The ** front-end charge of 10,000 yuan and the ** of the back-end charge of 6,000 yuan are different.

2.Regardless of the rate adopted by the company, when part of the redemption is made, it will be billed on a "first-in, first-out" basis.

Currently, there are two types of redemption rates, one is a fixed rate, and the majority of these redemption rates (regardless of the length of holding) are not exceeded. The other, less adopted, is the rate setting that encourages long-term holding. For example, the back-end fee** holds for less than 1 year, and the redemption rate is; The redemption rate for 1 year and less than 2 years is; The rate is 0 for 2 years.

The calculation of the redemption fee is generally calculated according to the "first-in, first-out" method, that is, when the shares are redeemed, the company will redeem them sequentially from the earliest shares of the investor. For example, an investor bought 5,000 shares of HSBC Jinxin Longteng in January this year (the redemption fee of ** is, 10,000 shares of HSBC Jinxin Longteng were bought in February**, and if the investor applies for redemption of 8,000 shares in March, the company's operation is to redeem 5,000 shares of January subscription + 3,000 shares of February subscription. The redemption fee that investors need to pay is 8000 / net value on 12 months (rounded to one decimal place).

If the investor buys ** with different redemption rates based on the holding time, then the calculation will also be based on the first-in-first-out method. Assuming that the holding time is less than 1 year, the redemption rate; 1 year but less than 2 years; 0 for 2 years. If the investor bought 50,000 yuan the year before last (calculated according to the holding time of 2 years), bought 50,000 yuan last year (calculated according to the holding time of 1 year), bought 50,000 yuan at the beginning of this year (less than 1 year), and now redeemed 100,000 yuan.

For the sake of simplicity of calculation, regardless of the value-added brought by the investment during the period, the order of redemption of the company is 50,000 yuan for 2 years + 50,000 yuan for 1 year. Investors need to pay a redemption fee: 50,000 0+50,000 yuan.

Separated, front-end and back-end charges** are not the same. If you purchase the ** front-end fee, you will be charged the subscription fee first, and the redemption will be less. If it is bought by the back-end fee, then the subscription is free, and the redemption depends on the number of years.

I won't give you a mix of buying and selling.

The front-end fee and the back-end fee refer to the subscription fee, not the redemption fee, 8000 within 2 years, 6000 according to the calculation of the redemption fee of the back-end fee, 2000 according to the redemption fee of the front-end fee, and the redemption fee of 8000 after 2 years is calculated according to the unified regulations.

In the actual ** investors, the front-end fee and the back-end fee are the two ways of open ** purchase and redemption, the front-end is paid at the time of subscription, and the back-end fee is paid at the time of redemption.

**The difference between front-end and back-end charges is as follows:

1.Different natures: the front-end fee is the payment method paid at the time of application, and the back-end fee is the payment method paid at the time of redemption.

2.Different offers: The front-end charging rate is relatively low, generally, while the back-end charging rate is relatively high, generally.

3.The features are different: the front-end fee is suitable for short-term investments, and the back-end charges are suitable for long-term investments.

The main differences are, different nature, different characteristics, and different benefits, as follows:

First, the nature is different.

1. Front-end charges.

The front-end fee refers to the payment method that pays the subscription fee at the time of purchase of open**.

2. Back-end charges.

The back-end fee refers to the payment method that does not pay the subscription fee when buying an open**, and only pays when it is sold.

Second, the characteristics are different.

1. Front-end charges.

The front-end fee is paid at the time of purchase**, and there is no need to pay the subscription fee charged in the form of back-end charge.

2. Back-end charges.

The back-end fee is a payment method that is paid only when it is sold, and when it is sold, in addition to the redemption fee, the subscription fee charged in the form of back-end fee must also be paid.

3. The benefits are different.

1. Front-end charges.

Front-end charges generally have preferential rates.

2. Back-end charges.

There is no discount for back-end charges, the general rate is.

The front-end fee refers to the payment method in which the investor pays the subscription fee when purchasing an open-ended**. The back-end fee refers to the payment method in which the investor does not pay the subscription fee when buying the open-ended **, and only pays when he sells. When using this fee model, the total amount of funds that finally purchased ** shares = the total amount of investors and the amount of front-end fees.

Comparison of front-end and back-end charges.

1. The front-end charging model is a normal charging model, and the investor will calculate the first fee at one time when purchasing, and when the investor redeems for any reason in the later stage, he only needs to pay the redemption fee according to the regulations. One of its significant drawbacks is that the share that investors receive after purchase is often less than ideal and fragmented due to the deduction of related expenses.

2. The back-end charging model is to encourage investors to hold for a long time, and avoid the scale of the company from changing in advance due to the frequent selling of investors, which will affect the normal operation of the manager. As the investor holds for more time, the number of back-end fees gradually decreases until they are exempted.

In actual operation, there are two ways to collect open-ended subscription fees, one is called front-end fees, and the other is called back-end fees. The front-end fee refers to the payment method that you pay the subscription fee when you purchase an open**. The back-end fee refers to the payment method that you do not pay the subscription fee when you buy the open**, and pay it when you sell.

Backend fees are designed to encourage you to hold for the long term, so the rate of backend charges generally decreases as you hold for more time. Some even stipulate that if you can hold ** for more than a certain period of time before selling, the backend fee can be waived altogether. As a reminder, the backend fee and redemption fee are different.