The advantage of open-end funds over closed-end funds is that the size of their funds is not fixed, and investors can purchase or redeem funds at any time as needed.

However, subscriptions and redemptions are generally not available during the closure period of the fund. The so-called closed period, which is the time for the fund to open a position after the fund raising period, generally lasts for 3 months. After the fund is opened, investors can make purchases and redemptions at any time as long as they are on the working day. According to the relevant regulations and the fund contract, there will be some restrictions when investors make purchases and redemptions of open-end funds.

1. Fund subscription restrictions

After the fund published the legal documents such as the prospectus, the fund began to recruit legal investors. According to the open fund plan disclosed by the domestic fund management company, the initial fundraising scale generally has an upper limit. During the initial fundraising period, if the share of the purchase on the last day plus the previous share of the purchase exceeds the prescribed limit, the investor can only share the equity fairly and cannot be fully subscribed.

In addition to the subscription price, an open-end fund usually also has a minimum subscription amount, just as the minimum purchase unit of a stock is the same. In addition, according to the relevant laws and fund contracts, there is still a certain limit on the total share of funds held by a single investor, such as not exceeding 10% of the total share of the fund.

In the daily subscription of open-end funds, the original cap of the fund scale is still valid. When the fund reaches the upper limit, the fund can only be redeemed and cannot be purchased.

2. Fund redemption restrictions

The restrictions on redemption of open-end funds are mainly the restrictions on huge redemptions. According to the "Open-end Securities Investment Fund Pilot Measures", in the single open day of open-end funds, when the fund's net redemption application exceeds 10% of the total fund share, it will be regarded as a huge redemption. When the huge redemption application occurs, the fund manager may apply for the extension of the remaining redemption application on the premise that the redemption ratio is not less than 10% of the total fund share. That is to say, the fund manager can redeem according to the situation, and can also refuse this part of the redemption. The part that is refused to redeem can be delayed until the next open day, and calculated based on the net asset value of the fund on the open day. Redemption amount.

Of course, in the event of a large redemption and deferred payment, the fund manager shall notify the fund investor within the time specified in the prospectus by mail, fax or other means specified in the prospectus to explain the relevant treatment methods, and also in the designated media and other Announcement on relevant media; the time of notice and announcement shall not exceed three stock exchange trading days.