Subscription and Redemption
For open-ended funds on EVIDENT, ongoing trading happens through Subscription and Redemption requests.
Subscription
Buying new units of a fund. When you submit a subscription, you specify the amount you want to invest. At the next dealing day's cut-off, units are issued to you at the prevailing Net Asset Value (NAV).
Redemption
Selling units of a fund back to the fund itself. When you submit a redemption, you specify the amount or number of units you want to redeem. At the next dealing day's cut-off, your units are redeemed at the prevailing NAV and the cash is credited to your wallet.
Where this differs from primary or secondary
Subscription and Redemption only apply to assets in the S&R (Subscription & Redemption) state — open-ended funds. Other assets use commitment (primary) or peer-to-peer secondary trading instead.
