Open-end Funds Rate Study

Ⅰ. Why did the writer make a systematic study on the feesand expenses of mutual funds and how to do it? 1) The purpose of studying the fees and expenses of mutualfund. As the first mutual fund in mainland China , Hua An Chuang Xinwas launched in September,2001. From then on , the mutual fundsdeveloped very fast relating to the types ,assets and amounts in recentthree years. At the same time the fees and expenses attract moreattentions from the investors and regulators. But the main contributionson the mutual fund in Chinese academy currently just focus on the historyof open-ended funds, clarify of fund types, trading strategies andcorporation governance. Seldom has results on the fees and expense offunds. The long history and experience of mutual funds demonstrate thatthe fees and expenses plays very important role in the aspect of pricing.On the one hand the level of fees will influence the profit of fundmanagement company, the preference of investment, fund portfolio andproduct design, on the other hand it will directly add or reduce theprofits of the investors. Because of the above reason, the fees andexpenses always got more attention from the participants of securitymarkets and academies in overseas countries. The writer spent a lot of time to search for the comprehensiveintroduction and analysis of fees and expenses of open-ended fundsabroad and concentrate on the study of fees ′structure, models of thelevel of fees and the trends of mutual funds in different countries.The main purpose is to provide some useful theory reference for thereasonable design of fund fees by the local fund company ,to help theauthorities to stipulate the more suitable laws and regulations of mutualfunds and also wish to educate the investors to have a deeperunderstanding of fund fees to make a more clever investment choice inthe near future. 2) The method of study At present the mutual fund business is in the process of beginningand rapid development stage in China. In the course of study mutual fundnot only requires to absorb the advanced and mature experience of mutualfund in overseas countries, but also the Chinese unique characteristic ofmutual funds must be taken into consideration. In order to comply withthe above principle ,the writer endeavored to make a deep study fromthree points and angels which include the model analysis method, macroand micro analysis method and combination of Chinese local marketunique essence with the mature experience of overseas countries method. Ⅱ. The introduction of main content of the article The final aim of the article is to point out the exist shortcomings offund fees and expenses in our country and provide the detailedsuggestions on the arrangement of fees and expenses by comparison tothe other countries. The article was divided into seven chapters. And themost important contents focus on the charpter IV ,V, VI and VII. In firstpart, the main contributions of fees and expenses of mutual funds wereclearly and comprehensively illustrated . Simultaneously the purpose ofwriting the article and method of the study fees were also stated in therest of part Ⅰ. In order to give readers an explicit idea of mutual fundfees , more detailed information on the structure of fund fees wasprovided in chapter Ⅱ . In third part, the systematic study and analysison the trends of mutual funds were summarized . And the writerseparately study the fees and expenses of mutual funds in America,Germany, other European countries ,Taiwan and Hongkong districts.Based on the above research and analysis, in chapter IV the writer strictlyillustrate the mechanism of fund fees and expenses from macro and microaspects. And also set up the models on the management fees andredemption fees. In the continued chapter, the article make a deeperanalysis on the outside factors such as regulations, information disclose,corporation governance and taxation that affect the level of fees andexpenses of open-ended funds. In chapter VI, the writer make an initiateinnovation on the establishment of fees models relating to Chine...