Know about funds when investing in fundsLottomaxThe calculation of subscription share is a very important basic knowledge. Below, we will explain this concept in detail to help investors better understand the process and calculation method of fund subscription. First of all, let's understand what is fund subscription. Fund subscription refers to the behavior that investors buy fund shares from fund management companies. During the issuance of the fund, investors can subscribe according to the face value of the fund, a process known as the fund's initial public offering (IPO). After the end of the initial public offering, the fund will enter the normal trading stage, when investors can buy fund shares according to the market price. So, how to calculate the subscription share of the fund? Here is a basic formula: subscription share = subscription amount / subscription price subscription amount refers to the total amount that investors want to invest, and the subscription price is the face value of each fund. Usually, the face value of the fund is 1 yuan. To better understand this calculation process, let's take a look at an example. Suppose the investor wants to invest 10000 yuan and the subscription price of the fund is 1 yuan / share, then: subscription share = 10000 yuan / 1 yuan / share = 10000, which means that the investor will buy 10000 funds at the price of 10000 yuan. In addition, investors also need to consider the subscription fees of the fund. Subscription fee is the fee that investors need to pay when subscribing for the fund, which is usually a certain proportion of the subscription amount. Suppose the subscription rate is 0Lottomax.5%, then the subscription fee in the above example is: subscription fee = subscription amount × subscription rate = 10000 yuan × 0.5% = 50 yuan. Therefore, the actual amount that investors need to pay is 10050 yuan, and the final fund share is still 10000. It is worth mentioning that there are usually two ways of charging funds: front-end fees and back-end fees. The front charge is the fee paid at the time of subscription, while the back end charge is the fee paid at the time of redemption. When choosing a fund, investors should read the fund contract carefully and understand the charging method and rate of the fund. In a word, the calculation of fund subscription share is an important basic knowledge for investors. By understanding the concepts of subscription price, subscription amount and subscription rate, investors can better invest in funds and increase their wealth.
