Funds, guarantees and other institutions will further reduce service charges and promote financial infrastructure to reasonably reduce transaction, custody, registration, liquidation and other expenses. The discussion on fund fee reduction in the market has intensified. So today, Bian Xiao compiled the management ratio of 100 funds here. Let's have a look!

The market is hotly discussing fund fee reduction

The non-bank financial team in orient securities believes that the fee reduction mentioned in the Opinions is universal, including government, municipal public utilities, financial services, trade associations and chambers of commerce, and logistics services. The fees charged by brokers and funds account for a relatively low proportion of all kinds of fees, and it is unlikely that the supervision will focus on the financial industry.

Many fund practitioners believe that they have not received the notice of regulatory requirements for fee reduction. Judging from the contents of the document, this fee reduction is not an administrative compulsory act, and some unreasonable fees may be required to be reduced.

Liu Yiqian, head of the evaluation business of Shanghai Securities Fund Evaluation Research Center, said that transaction, custody, registration and liquidation are all fund expenses, which belong to the investment cost of fund investors. Reducing these fees is generally beneficial to investors and helps to enhance their sense of acquisition, which may be the purpose of supervision.

There are also some brokerage analysts who believe that reducing institutional transaction costs should not be the same as standardizing market-oriented rates. At present, the stock trading commission and the actual rate of fund products are on a downward trend under the promotion of market-oriented mechanism, but there is limited room for decline at present.

Some public offering executives reminded that the downward adjustment of public offering fees in the fund industry is a market-oriented process. If all of them are reduced to a very low level, it may endanger the survival and development of small and medium-sized Public Offering of Fund, which is not conducive to the sustainable development of the industry as a whole.

The ranks of low-rate funds continue to expand.

In fact, in recent years, Public Offering of Fund has taken actions to reduce costs. There are not a few fund products that reduce management fees and custody fees every year.

According to the statistics of China, as of September 16, 2022, there were 140 fund products with reduced management fees and custody fees (different shares are counted separately, the same below), and there were 132 fund products, including different types of fund products such as bond products, mixed products and currency products.

Among the funds with reduced rates, half are bond funds, 39 money market funds, 20 hybrid funds and 6 FOF funds. In the active equity funds such as Guangfa Anxiang, Guotai Rongfeng Extended Growth, Guotai Fu Min Strategic Value, Investment Advantage Enterprise, Caitong Multi-strategy Fu Rui, the management fees are reduced by 0. 1%-0.9%.

The growth management rate of enterprises with investment advantages, Fu Rui with multi-strategy of Caitong and Zhixuan with Taixin has the largest decline, from 1.5% to 0.6%, as high as 0.9 percentage points.

Due to the different input costs, the management rates set by various funds are quite different. For example, the overall management rate of partial stock funds is higher than that of bond funds, the management rate of active management funds is higher than that of passive management funds, and the management rate of monetary funds is the lowest.

On the whole, the average management fees of various funds showed a downward trend. For example, the minimum management rate of ordinary equity funds has been as low as 0.8%; The average management rate of index funds is as low as 0.53%, and the lowest rate is 0. 15%. The average management rate of bond funds dropped to 0.38%, and that of monetary funds dropped to 0.24%.

Among the 132 fund products that only reduce the custody rate, there are both funds whose management rate has been lowered simultaneously and funds whose custody rate has been lowered separately, such as Changxin Ruijin, Guofu One-year Pure Bond, Changsheng Shengqi One-year, and Commercial Bank Huijiali, whose custody rate has been lowered separately, all exceed 0. 1%.

Market participants pointed out that fund companies have maintained their competitive advantage by actively reducing their rates, and some companies have attracted a large number of institutional investors to buy by reducing their rates.

Public Offering of Fund has taken many measures in favor of the holders.

At present, the scale of industry management in Public Offering of Fund has exceeded 27 trillion yuan, and the number of products has exceeded 1 10,000. Industry competition is fierce. In addition to reducing management fees and custody fees, the industry is constantly exploring new product innovations, striving to reduce the burden on holders and enhance their sense of acquisition.

For example, 20 19 fund industry has added a floating management fee model, and fees are directly linked to performance. For example, some fund products mentioned in the product data that if the net value reaches certain conditions, the management rate will drop to zero. At present, the latest management fees for Dongfanghong's industrial upgrading are: Dongfanghong Qiheng holds A for three years, Dongfanghong Qixing holds A for three years, Wu Dong Yu Ying holds B for one year, Nuoan Steady Income, Xinaohui Manager A, Xinaohui Manager C, Xinaohui Manager E and Huaan Securities Juying holds A***9 Fund, and the management fees for Dongfanghong's industrial upgrading are 0 in the first half of this year.

In addition, on the product side, developing products that meet the different needs of investors, establishing a reasonable comparison benchmark and enriching the rate model are all important directions for industry innovation exploration.

In the past two years, many fund companies have reduced the subscription and redemption costs of holders by issuing C shares for equity funds. Fund C shares do not charge subscription fees, and they can be held for a long period without subscription and redemption fees, which can greatly reduce the transaction costs of fund holders.

On the fund sales side, the operating cost of the Internet platform is low, and even the subscription rate and redemption rate can be discounted by 1. Some fund companies sell funds directly through official website and APP, and set some fixed preferential rates. Many head companies have launched "0 yuan Subscription" fund activities. Switching between different funds under the same fund company can also enjoy preferential rates.

In the short term, fund companies can attract investors by reducing management fees and buying redemption fees. In the long run, it depends on the performance of the fund. Good performance is the best return for investors. The era of low rates will certainly come, but it does not mean that the lower the management fee, the better for investors. Management fee is an important source of income for fund companies, which can be used by fund companies to improve the strength of investment and research teams, product income level and risk control ability. Reasonable management fee can also play a good incentive role for fund companies.

Related articles on reducing 100 fund management fee rate:

★ What is the impact of Public Offering of Fund's pension management system in 2022?

★ What are the types of pension trusts?

★ Four common ways to buy funds