Subscription refers to the purchase of fund shares from the fund manager after the fund is established.

Redemption refers to the act of fund investors selling fund shares to fund managers.

Explanation:

Order: Subscribe-Buy-Redeem

Subscription and purchase are buying, redemption is selling, which is just a term of the fund.

1. Subscription-The subscription fee of the securities fund is lower than that of the raising period (generally three months, you can buy or not sell).

2. Subscription-the subscription behavior of investors after the establishment of a securities fund (after a three-month raising period or good sales of some funds and a month or two to reach the raised amount).

3. Redemption-If you don't want the fund, you can turn it into cash.

Supplement:

If we must find the difference between buying and buying, selling and redeeming, it can only be aimed at those funds that can be traded in the secondary market (such as lof funds and ETF funds).

In the process of fund trading in non-secondary market, whether subscription, subscription or redemption, the transaction is between investors and fund companies, that is to say, buying is to subscribe or buy fund shares from fund companies, and redemption is to recover fund shares from fund companies.

In the secondary market transactions, the buying and selling of funds and stocks are the same. All transactions are conducted among investors, and fund companies do not participate. In other words, you buy fund shares from other investors, and if you don't want them, you sell them to other investors. To be clear, if no investor wants to sell his fund share, you can't buy it; If no investors want to buy fund shares, your fund will not be sold, although the probability of this situation is very small.