Fund transactions generally charge subscription fees or subscription fees, commissions and redemption fees. So, what does fund subscription mean? What's the difference between subscription and subscription? Xi Cai Jun has prepared relevant contents for your reference.

What does fund subscription mean?

Fund subscription means that an institution or individual submits a subscription application to the fund company or fund custodian before the fund is issued, and purchases the fund shares that have not yet been issued. Fund subscription is usually only for specific types of investors, such as institutional investors or high-net-worth individual investors, and generally has high thresholds and risks.

What is the difference between subscription and subscription?

1, different times

Fund subscription is generally carried out before the fund is issued, and the fund company will set a subscription period before the fund is issued. And after the subscription of the fund, the interest generated during the subscription period will be automatically converted into the investor's fund share when the fund is established.

Fund subscription is usually carried out after the fund is issued and within the open day. Generally, newly established funds have a three-month closure period, and the subscription after the closure period is the subscription fund.

2, the price is different

Because the subscription of the fund is carried out before the fund is issued, there may be a price difference between the subscription price and the net value of the fund. During the subscription period, investors need to purchase fund shares at a pre-set subscription price.

The subscription price of fund subscription is calculated according to the current net value of the fund. 、

3. Different interest rates

Before the establishment of the general fund, in order to raise more funds more quickly, the fund company discounted the subscription rate or did not charge.

After the fund is issued, the demand for funds is no longer so urgent, so the subscription rate is generally higher than the subscription rate.

4. Different trading methods.

After the fund subscription is over, investors need to wait until the fund issuance is over and the closed period is over before they can redeem it.

Fund subscription, generally in the next trading day, investors can redeem.