The purchase of funds is usually very smooth, that is, how much money we invest, then how much we can get in the end. So what does it mean if we buy a fund and encounter a purchase restriction?

What does the fund purchase restriction mean?

Fund purchase restriction means that the fund has undergone a relatively large adjustment, so investors are prohibited from investing. Generally speaking, the ability of fund managers, the holding capital of funds and the product structure of funds are all limited, so when investors invest too much money and break through this limit, funds can only stop buying. In this regard, the fund purchase restriction is essentially a protective measure for investors, which can effectively avoid the herding effect of investors.

For QDII funds or other funds that invest in overseas markets, when investors break through the upper limit of the fund's foreign exchange quota after investing heavily, the fund enters a suspension of subscription for the simple reason that the fund can no longer buy foreign exchange for reinvestment. In addition, there are restrictions and products of fund managers. If a fund product can only absorb 65.438 billion yuan at most, then the extra one yuan and two dollars can't buy the fund.

To sum up, this is what fund purchase restriction means.