What Is a Nonrecurring Charge?

The one-time fee refers to the fees that investors need to pay when they purchase, redeem, or convert the fund. Such fees are paid directly by the investor at one time. Generally used in the financial and fund industries.

One-time fee

One-time fees refer to

The subscription fee is the fee that investors need to pay to purchase the fund. If the subscription fee is collected when the fund is purchased, it is called the front-end fee; when it is redeemed, it is called the back-end fee. Some back-end fees can be waived when the holding fund reaches a certain number of years. In order to encourage investors to hold for a long time, some funds use a subscription rate that decreases according to the holding period; some funds give preferential rates to large purchases in order to promote sales.

The subscription fee is deducted directly from the investment amount. For example, if you purchase a fund with a front-end fee rate of 4.5% for 10,000 yuan, after deducting the 450 yuan subscription fee, only 9550 yuan actually enters the fund's investment amount. According to regulations, the subscription rate of domestic open-end funds must not exceed 5% of the subscription amount. At present, the level of this rate is about 1% -2%.

Redemption fees are fees paid by investors when they redeem funds, and are often slightly punitive. They are mainly to encourage long-term investment and reduce the losses caused by large redemptions to other holders in the short term. The redemption fee income is owned by the fund assets after deducting the basic handling fee. According to regulations, the redemption fee rate of domestic open-end funds must not exceed 3% of the redemption amount, and the current rate level is about 0.5%.

The conversion fee is the cost incurred by an investor when switching between multiple fund types in the same series.