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What is an OTC fund and what is an OTC fund?
On-site fund refers to the fund listed and traded on the stock exchange after the securities company opens an account. Just like stocks, intraday prices fluctuate in real time and can be bought and sold at their own prices. There are closed-end funds, ETF funds, LOF funds, and some innovative funds. Off-exchange market is understood as the stock exchange market, that is, the agency sales of banks and securities companies, and the direct sales of fund companies, that is, the familiar open-end fund sales channels.

First, the difference between on-site and off-site

The difference between OTC and OTC funds is mainly reflected in six aspects: trading mechanism, purchase method, trading rate, trading price, trading time and trading threshold:

1. trading mechanism

Over-the-counter transactions are completed through fund companies, and the fund products of third-party platforms are also behind the fund companies.

On-site trading, direct purchase of fund shares with other investors.

2. Purchase channel

On-site trading can only be conducted through the website of the stock exchange or securities trading software;

OTC funds, fund companies, banks and third-party consignment platforms (such as Alipay and Tian Tian Fund). ).

3. Transaction rate

The handling fee for on-site trading is related to the trading commission of brokers. The commission of different brokers may be different, and it is generally around three ten thousandths at present. Some brokers can do 15,000 yuan, and the transaction cost will be lower.

4. On-site and off-site

"Market" is what we often call a stock exchange.

On-site funds are traded in the securities market, that is, in the secondary market, and you need to open a stock account to buy them. For example, you can buy ETF funds, LOF funds and closed-end funds in the market.

OTC funds are funds traded outside the securities market, such as brokers, banks, fund company official website and third-party platforms (such as Tian Tian Fund Network and Ant Wealth), which can be purchased without opening a stock account.

5. Buying starting point

At least 65,438+000 shares, or 65,438+0 lots, were bought by on-site funds. Generally, the floor fund is around 1-3 yuan, which is equivalent to a minimum of two or three hundred yuan. Over-the-counter funds used to start at 1000 yuan, but now many funds only need 10 yuan to buy them.

6. Operating tools

The subscription and redemption of OTC funds do not need to use shareholder accounts, but the operation of OTC funds must use shareholder accounts opened by brokers.

2. On-site funds include: closed-end funds, ETF funds, LOF funds and graded funds. Among them, only LOF funds can be bought on the market (directly traded through stock trading software) or purchased and redeemed off-site.

In fact, if the brokerage firm you use happens to sell a LOF fund on a commission basis, you can also apply for redemption on the spot, which is equivalent to both on and off the court.