Subscription refers to allocating capital into a fund, often during designated windows or commitment periods. Redemption is the process of withdrawing capital, which may be subject to fees, lock-ups, or redemption gates designed to protect remaining investors. Liquidity constraints vary by fund type — hedge funds may offer monthly or quarterly liquidity, while private funds operate on multi-year timelines. Subscription and redemption mechanics directly impact fund liquidity, AUM, and manager strategy flexibility. They are typically governed by investor mandates and detailed in onboarding documents like investor memos.