Compared with closed-end funds, the advantage of open-end funds is that their fund scale is not fixed, and investors can purchase or redeem funds at any time as needed. However, according to relevant laws and regulations and fund contracts, investors will also have some restrictions when purchasing and redeeming open-end funds. 1. Fund subscription restriction funds began to raise funds from legitimate investors after publishing legal documents such as prospectus. According to the open-end fund scheme disclosed by domestic fund management companies, there is generally an upper limit on the initial fundraising scale. During the initial public offering, if the subscription share on the last day plus the previous subscription share exceeds the prescribed upper limit, investors can only share it fairly in proportion and cannot subscribe in full. In addition to the subscription price, open-end funds usually have a minimum subscription amount, just like the minimum buying unit of stocks. In addition, according to relevant laws and fund contracts, there are certain restrictions on the total fund share held by a single investor, such as not exceeding 10% of the total fund share. In the daily subscription of open-end funds, the original upper limit of fund size is still valid. When the fund size reaches the upper limit, the fund can only be redeemed but not subscribed. 2. Fund redemption restrictions The redemption restrictions of open-end funds are mainly restrictions on huge redemption. According to the provisions of the Pilot Measures for Open-end Securities Investment Funds, when the net redemption application of an open-end fund exceeds 10% of the total fund share, it will be regarded as a huge redemption. When a huge redemption application occurs, the fund manager can postpone the remaining redemption applications on the premise that the redemption ratio accepted on that day is not less than 10% of the total fund share. In other words, the fund manager can give redemption according to the situation, or refuse this part of redemption, and the rejected part can be postponed to the next open day, and the redemption amount can be calculated according to the net asset value of the fund on this open day. Of course, when the payment is delayed due to huge redemption, the fund manager shall notify the fund investors to explain the relevant treatment methods by mail, fax or other means specified in the prospectus within the time specified in the prospectus, and make an announcement in the designated media and other relevant media; The longest notice and announcement time shall not exceed three trading days of the stock exchange. Related hot words: open-end fund subscription and redemption