Funds are divided into on-market funds and over-the-counter funds. After entering the market, investors can choose the funds they want to invest in. Among various fund products, on-exchange funds and over-the-counter funds have advantages and disadvantages, and investors need to choose the product that is most beneficial to them. So, what is the difference between on-exchange fund subscription and direct purchase?

What is the difference between on-exchange fund subscription and direct purchase?

The difference between on-exchange fund subscription and direct purchase mainly includes price , transaction fees, purchase channels, purchase objects and confirmation time, etc.

From the perspective of transaction prices and transaction fees, on-site fund sales are settled based on the transaction price in the secondary market, and fund subscriptions and redemptions are settled based on the net value. Only commissions are charged for fund transactions, while subscription and redemption fees are charged.

From the perspective of purchase channels, on-market funds can only be purchased in the secondary market. To subscribe, you need to open a fund account at a fund management company or a selected fund agency and apply to purchase fund shares in accordance with the procedures.

From the perspective of purchase objects, on-exchange fund subscriptions are through on-exchange stock exchanges, and after the shares are received, they are directly transferred to on-exchange securities accounts; on-exchange fund subscriptions usually refer to open-end funds.

From the perspective of confirmation time, the settlement time of fund trading is the same as that of A-shares (T+1 settlement). The application and redemption of open-end funds is confirmed on T+2, and the application and redemption of QDII is confirmed on T+3. On-site subscription is not a real-time transaction, and the transaction price is the net value of the day.