The internal deduction method aims at the subscription amount, that is, the total investment.
Subscription fee = subscription amount × subscription rate
Net subscription amount = subscription amount-subscription fee
Subscription share = net subscription amount/par value of fund unit
The external deduction method is aimed at the actual subscription amount, that is, the net investment amount.
Net subscription amount = subscription amount /( 1+ subscription rate)
Subscription fee = net subscription amount × subscription rate
Subscription share = (subscription amount-subscription fee)/par value of fund share
The external deduction method saves the subscription cost than the internal deduction method, that is, more shares can be obtained. Extrapolation is currently used.
Take the net fund value 1 yuan as an example, and the investment 10000 yuan:
Subscription share by internal deduction method = (10000-10000 *1.5%)/1= 9850 copies.
Subscription share by external debit = (10000/(1+1.5%))/1= 9852.21copy.