There are restrictions on subscription funds, that is, a single subscription cannot exceed RMB. The purpose of this is:

Protect the rights and interests of investors. When the fund market is good, many investors will rush to buy funds. If subscription is not restricted, the scale of funds will expand rapidly in a short time, and if it is not handled properly, the income of other investors will be diluted.

As the saying goes, "the ship is too big to turn around". If the fund scale is too large, it will be difficult for fund managers to manage it. Take stock funds as an example, the proportion of assets invested in stocks is not less than 80% of the total assets of the fund. Suppose the size of a stock fund is 1000 billion. When the stock market is not good, it still needs 8 billion shares, so it is difficult to exchange positions for shares.

Redemption of the fund may be limited: the fund has a huge redemption in a short period of time, so the fund company has set a maximum redemption amount. If there is no limit, after a huge redemption, the fund manager will be forced to sell shares to pay the redemption funds. After selling stocks, the stock price will generally fall, which will affect the net value, thus forming a vicious circle.