Subscription refers to the behavior of investors applying to buy fund shares during the existence of the fund and the open subscription period. After the fund is closed, if you apply to buy an open-end fund, it is customarily called fund subscription to distinguish it from subscription during the issuance period. The subscription of the fund is to buy. Listed closed-end funds are bought in the same way as ordinary stocks. Open-end fund is the number you want to buy, divided by the net value of the fund on the day of purchase, to get the number of units to buy. The subscription amount of open-end funds actually includes two parts: subscription fee and net subscription amount. The subscription fee can be calculated according to a certain proportion of the subscription amount or the net subscription amount. The domestic practice is generally to multiply the total purchase price (including fees) by the applicable rate to calculate the purchase fee, and deduct it from the purchase amount. But as will be mentioned later, this calculation method will lead to extremely unreasonable expenses. Therefore, with the approval of the CSRC, the subscription fee is calculated. So, it makes sense.
If calculated according to the former calculation method, we can get: subscription fee = subscription amount × applicable subscription rate net subscription amount = subscription amount-subscription fee subscription quantity = subscription day net subscription amount/fund share net value. This calculation method is very common in overseas markets such as the United States. The advantage of this method is that the calculation is relatively simple when using the "unknown price method"; In addition, because the decreasing rate is generally used according to the increase of subscription amount, it can avoid the unfair phenomenon that investors who buy less may actually pay more than investors who buy more according to the net subscription amount. Using this calculation method will make the applicable rate according to the net purchase amount slightly higher than the published rate. If investors want to know the applicable rate based on the net subscription amount, they only need to make a small conversion: the applicable rate based on the net subscription amount = the applicable rate based on the subscription amount ÷( 1- the applicable rate based on the subscription amount). For example, if the applicable rate is 2% according to the subscription amount, the applicable rate is 2% ⊙ (1-2%) = 2.04% according to the net subscription amount.