What does fund subscription mean? What is the definition of fund subscription?

I believe many citizens are familiar with the word "subscription" of the fund, so do you know what its brother fund subscription means? Come and have a look with me.

With the frequent outbreak of P2P, many people quit P2P and then turned their attention to fund management. There are many ways to manage funds, so do you all know what fund subscription means?

As far as I know, there will be a raising period before the fund is established, that is, the time period for raising funds. Generally, the maximum compensation is three months. Of course, there are also fund companies that have completed the fundraising feat in seven days. The behavior of investors buying funds in the process of fund raising is called "subscription", and the transaction price is generally the face value of the fund, that is, 1 yuan/share.

This is very different from the fund subscription, because the number of fund shares that investors can buy at the time of fund subscription is based on the net value of the fund, which may be more or less than 1 yuan/share.

Generally speaking, the subscription information can be found within two working days after submitting the subscription application. However, if the fund is still in the collection period at the time of inquiry, the "fund share balance" in the inquiry result will be displayed as 0. In addition, during the fund raising period, once the subscription application is accepted, it is irrevocable, and investors need to choose carefully.

In fact, the income of the subscribed fund share is calculated in the same way as that of the subscribed fund share, and the income is obtained from the T+2 day when the fund is purchased, where the t day is the trading day of the fund and the fund day is the working day.

The difference is that the fund products purchased during the subscription period will have additional interest income. From the T+2 day of subscription to the day before capital verification, customers can enjoy certain interest on their subscription funds, generally the interest rate of bank demand deposits.

In addition, to buy the same amount, the fees required for subscription and subscription of funds are also different.

The difference between subscription and subscription fund.

If you purchase funds through China Merchants Bank, the difference between subscription and subscription is as follows:

Subscription: the purchase of newly issued products in the first raising period is called subscription, and the expenses incurred are subscription fees;

Subscription: the purchase after the product is established is called subscription, and the expenses incurred are subscription fees.

Tips: If you have any questions, you can call the official customer service hotline or contact China Merchants Bank APP for online customer service consultation.

Is it better to subscribe or subscribe for a fund?

The fund has been fully subscribed.

During the subscription period, investors can buy funds at will, and the subscription fee is required for fund subscription. Due to the different subscription fees, the subscription fees of different sales platforms may be different. The subscription fee varies according to the purchase amount. The larger the amount of funds, the cheaper the handling fee, and the general upper limit is 1 1,000 yuan. After the fund subscription period, it will enter a closed period, usually 3 months. During the closing period, the fund manager will initially open a position. After the new fund is listed and traded, investors can sell it, so the fund subscription is good.

New fund subscription or subscription is better, the following is the comparison between the two:

1) From the perspective of subscription cost, the subscription rate of funds is about 1%, while the subscription rate is about 1.5%, among which the subscription rate of stock funds is higher than that of other types of funds, for example, the subscription rate of bond funds is generally around 0.8%. On the whole, the subscription fee of funds is generally lower than the subscription fee, and the net value of new funds at the time of subscription is often relatively low, so many investors will rush to subscribe for new funds.

2) From the perspective of security: whether a fund is worth investing is a very important reference standard, but new funds often do not have these data, so there is no reference, so the risk of investing in new funds is higher than that of mature old funds. Generally, capital preservation funds will be accompanied by a capital preservation clause, but the capital preservation clause is only applicable to funds subscribed during the subscription period. Therefore, for the newly issued capital preservation fund, it is recommended to adopt the subscription method.

The difference between fund subscription and fund subscription;

1) The operation of a fund usually includes product design, approval, issuance confirmation, fund raising, liquidation and formal operation. The main difference between fund subscription and subscription lies in the different stages of fund operation at the time of subscription.

2) Subscription refers to the purchase made by investors during the fund raising period when the fund has not been officially listed. Subscription refers to the purchase by investors after the end of the raising period. At this time, the fund has been in the formal operation stage, and some funds also support the fund subscription at the end of the closed period.

What are the benefits of subscribing for a new fund?

The income from subscribing for new funds is mainly determined by the market environment. Generally, subscribing for a new fund in a bear market can make us cash in our profits faster, while subscribing for a new fund in a bull market will cause us greater losses. Because the new fund has no past performance, we can only pay attention to the past performance of its fund manager when we buy it, so the subscription of the new fund is mixed. In the short term, the subscription of new funds will generally be relatively low net worth and strong growth, so its growth potential will be relatively large. In the long run, the increase after the new fund subscription has a great relationship with the whole market, that is, the difference between bull market subscription and bear market subscription.

The content of this article comes from: China Law Publishing House "General Knowledge Series of Legal Life"

Is it better to subscribe for a new fund or buy an old one?

The new fund and the old fund have their own advantages, so different fund groups have different views on them:

Features of the new fund:

1. The new fund is small in scale, and the fund manager is flexible in management, so it can timely switch positions and exchange shares.

2. In the bear market stage, especially when the new fund is launched, the fund manager has to open a position at this time, so the probability of falling is high;

3. The liquidity of the new fund is poor, and there is no past performance for reference, but the purpose of the new fund manager is to improve the fund's income and make the scale bigger. Therefore, the new fund is suitable for investors with certain risk tolerance.

Features of the old fund:

1. Old funds are large in scale, and fund managers are generally relatively safe to operate. While ensuring the income, we will not actively pursue excess income.

2, the old fund has past performance as a reference, which can predict the general income of the fund manager in the future.

3. When the old fund encounters a bull market, because the position is too heavy, it may have more than expected income, so it is a stable investor.

To sum up, investors can choose old funds or new funds according to their own behavior habits.

1. Which should I buy, the new fund or the old fund?

As the new fund has just been issued, there is no previous performance to refer to, so the scale is not very large. Therefore, the focus of the new fund manager is to make the scale bigger, but to make the scale bigger, there must be a higher rate of return to attract investors. Therefore, new fund managers will strive to improve their performance, so in the long run, buying new funds in the structured market is not a lot of choices.

In the bull market stage, it is best to buy old funds, because the positions of old funds are heavier, and investors can get excess returns when the stock price rises. In structured banks, because the fund has a certain scale, the fund manager will not try to improve the performance, so the performance may not be as good as that of the new fund.

At the end of the bull market, investors should give priority to redemption of both new and old funds.

2. What are the advantages and disadvantages of subscribing for a new fund?

The benefits of subscribing for a new fund: 1, the price of the new fund is cheap, and the net value of the new fund is 1, that is, 1 yuan, which is relatively cheap; 2. The new fund can avoid risks. The new fund has a three-month closure period. If the market is not good in these three months, the fund manager can choose not to open a position or to open a position in a small amount. During the closed period, the fund is not affected by market conditions, thus achieving the purpose of avoiding risks in disguise.

Disadvantages of subscribing for new funds: 1. There are many uncertainties in the new fund, and the new fund has no past performance as a reference, so it is impossible to judge whether the fund is a high-quality target; 2, the new fund may miss the market, the new fund has a long opening period, and the fund may miss this market when the market is good.