What does the fund subscription and redemption mean?
Fund subscription refers to the behavior of investors buying fund shares from fund companies or fund sales institutions. Through subscription, investors can put their funds into the fund and enjoy the benefits brought by the fund's investment assets.
Fund redemption refers to the behavior of investors selling their own fund shares to fund companies or fund sales institutions. Through redemption, investors can turn their fund shares into cash and withdraw in time when the market is bad, thus reducing investment risks.
What are the rules for fund subscription and redemption?
1. Fund subscription: Fund subscription usually needs to be conducted on an open day. Investors can purchase fund shares through banks, fund companies, fund sales platforms and other channels. The subscription amount usually has a minimum starting point and is calculated according to the net value. After the subscription, the fund company will confirm the subscription result and deduct the subscription amount within T+2 working days.
2. Fund redemption: Fund redemption also needs to be carried out on the open day. Investors can apply to the fund company for redemption and get the redemption money within T+2 working days. It should be noted that redemption during the holding period may generate certain expenses, and the redemption price of fund shares is usually based on the net value of fund shares.
3. Expenses: Both fund subscription and redemption involve some expenses. Among them, the subscription fee is usually zero or extremely low, and the redemption fee will be different due to factors such as fund type, holding time and redemption method. In addition, the fund may also charge management fees, custody fees and other fees.
It is worth noting that the above are the general rules for fund purchase and redemption, and different types of fund purchase and redemption rules may be different.