Closed-end fund (closed-end fund for short) refers to a fund whose total fund share is fixed within the term of the fund contract, and the fund share holder may not apply for redemption.

Open-ended funds (referred to as open-ended funds) refer to funds whose total share is not fixed and can be purchased or redeemed at the time and place agreed in the fund contract.

Measures for the sale, trading, subscription and redemption of fund shares of funds with other modes of operation shall be formulated separately by the the State Council Securities Regulatory Authority.

After the open-end fund contract comes into effect, investors' application to buy fund shares is usually called fund subscription.

Fund subscription adopts the principles of "amount subscription" and "unknown price".

When investors subscribe for fund shares, the subscription amount must reach the minimum subscription amount agreed in the fund contract, and the subscription price is calculated according to the net value of fund shares announced by the fund manager after the trading hours on the subscription date.

You need to pay a certain subscription fee when you purchase, and different types of funds have different subscription fees.

Fund redemption refers to the behavior that the fund share holder asks the fund manager to buy back the fund share according to the conditions agreed in the fund contract during the existence of the fund.

Most funds need to pay a certain redemption fee when redeeming, and the redemption fee is related to the fund type and the investor's holding period.

References:

People's Republic of China (PRC) Securities Investment Fund Law and Questions and Answers on Fund Investment Knowledge