Core Viewpoint - The recent wave of fund subscription limits is a strategic move to protect existing investors and manage liquidity, rather than a lack of investment opportunities [3][4]. Group 1: Reasons Behind Subscription Limits - The primary reason for the subscription limits is to prevent dilution of returns for existing investors, especially in high-performing funds like China Europe Digital Economy, which has surged 60% this year [3]. - Subscription limits are also implemented to avoid strategy collapse in quantitative funds, where rapid inflows can overwhelm existing models and lead to poor performance [3]. - Limited foreign exchange quotas are another factor, as seen with Huatai-PineBridge Hong Kong Stock QDII, which has gained 144% this year but faces capacity constraints [3]. Group 2: Types of Subscription Limits - There are three categories of subscription limits: protective limits for high-performing funds, such as China Europe Digital Economy and Yongying Ruixin, which aim to secure profits and prevent speculative inflows [4]. - Risky limits include those on funds with low assets under management, which may indicate impending liquidation, and those that limit certain share classes to prevent arbitrage [5]. - Subscription limits can also signal potential pitfalls for investors, particularly in funds with high premiums or those that are heavily reliant on dividends [5]. Group 3: Investment Strategies for Retail Investors - Retail investors are advised to target funds with strong order backlogs and limited capacity, such as China Europe Digital Economy and Yongying Ruixin, which have significant growth potential [6]. - Investors should avoid funds with low asset bases, as they have a high probability of liquidation, and those with low institutional ownership, which may be subject to speculative trading [7]. - Monitoring subscription limits and market conditions is crucial; for instance, if a fund's scale increases by more than 20% weekly, it may be wise to reduce exposure [8].