When picking similar funds, go for those with lower fees

Cost: There’s no upfront cost to pay. Before buying, just check how much the sum of the management fee, custody fee, and sales service fee comes to.
In plain terms: For every 1 percentage point increase in a fund’s annual fee, the amount you end up with after 20 years drops by roughly 18%, and after 30 years by about 26%. Among funds in the same category, picking one with lower fees is the only thing you can be certain of in advance.
Benefit: The difference in fees gradually erodes your principal through compound interest — that tiny amount deducted each year adds up over time. If a fund’s annual fee is 1 percentage point higher, the final value after 20 years will be roughly 0.99^20, or 18.2%, lower than it would have been otherwise; after 30 years, the drop is about 26%. Since 2023, China has rolled out reforms to fund fees, capping the management fee for actively managed equity funds at 1.2% and the custody fee at 0.2% for newly registered funds as of July 7, 2023. 136 fund companies have also lowered these fees for their existing products to meet these limits.
Evidence grade: C
Sources:中国证监会 (2023). 证监会有关部门负责人就公募基金费率改革答记者问. http://www.csrc.gov.cn/csrc/c100028/c7418692/content.shtml；厦门证监局 (2024). 「新注册的主动权益类基金统一执行"管理费率不超过1.2%、托管费率不超过0.2%"的上限标准」. http://www.csrc.gov.cn/xiamen/c105636/c7511608/content.shtml；Fama EF, French KR (2010). 见第 11 条. https://doi.org/10.1111/j.1540-6261.2010.01598.x
Notes: This calculation follows the standard formula and assumes both funds generate identical pre-fee returns. In reality, you’d also need to factor in subscription fees, redemption fees, and sales service fees for Class C shares. This information does not constitute investment advice.