When many investors buy on-market funds, they are confused about buying and subscribing. After all, these are both terms for buying funds. Buying a certain fund and subscribing for a certain fund are both buying. means, but in fact there are several differences between buying and subscribing.

What is the difference between buying and subscribing funds on the exchange?

1. The purchasing channels are different. Buying funds on the exchange can only be purchased in the secondary market, while subscribing is to the fund management company. Or open a fund account with a selected fund agency and apply to purchase fund shares in accordance with the prescribed procedures.

2 The transaction prices are different. On-exchange fund sales are settled based on the transaction price in the secondary market, while fund subscriptions and redemptions are settled based on the net value.

4 Transaction fees are different. Only commissions are charged for fund trading, while subscription and redemption fees are charged.

5 The confirmation time is different. The settlement time for fund trading is the same as for A-shares (T+1 clearing and settlement). The application and redemption of open-end funds is confirmed on T+2, and the application and redemption of QDII is confirmed on T+3.

6 Purchase objects are different. Buying is a transaction process between investors. New fund shares will not be created and the total fund shares will not increase. Subscription is a process of transactions between investors and fund companies. .

On-exchange fund buying and subscription are both types of fund buying. There is no absolute good or bad distinction between the two. Which one to choose depends on the preferences of investors. In fact, the purchase of OTC funds is most similar to fund subscription. When buying funds, everyone should distinguish the differences between buying, subscription, subscription and fixed investment.