Everyone knows what the floor fund means and how to buy it. Today, Bian Xiao specially and completely sorted out the relevant information for your reference, hoping to help you.

What is an on-site fund?

The floor fund is a kind of fund listed and traded on the stock exchange, also known as exchange traded fund (ETF). They are different from traditional mutual funds, which are sold directly to investors in fund companies. The portfolio of floor funds usually tracks an index, such as the Standard & Poor's 500 Index, and investors can buy and sell them on the stock exchange.

Why buy an on-site fund?

1. Convenience

On-site funds can be listed and traded on the stock exchange, which means they can be bought and sold like stocks, which is very convenient. You can buy and sell on-site funds at any time in the stock exchange without waiting for the fund company to open for trading.

2. Low cost

Because the on-site fund usually tracks the index and does not need to hire a fund manager to choose a portfolio, its management fee is usually much lower than that of traditional mutual funds. Because floor funds can be traded like stocks, investors can buy and sell through online brokers at very low transaction costs.

diversification

On-site funds can track different types of indexes, such as stocks, bonds and commodities. Investors can diversify their investments by buying different types of on-site funds, thus reducing risks.

How to buy on-site funds?

1. Select a broker

To buy on-site funds, you need to choose online brokers. These brokers usually offer two options: commission trading and commission-free trading.

2. Research field fund

Before choosing a floor fund, you need to study different floor funds to understand their costs, portfolios and risks. Online tools can be used to compare different on-site funds.

3. Place an order to purchase on-site funds

Once you decide which floor funds to buy, you can place an order on the website of the brokerage firm you choose. You need to enter the code of the on-site fund, select the purchase quantity and price, and then confirm the transaction.

4. Monitor your investment

Once you buy an on-market fund, you need to monitor your investment. You can use the tools provided by brokers to track the performance of funds in the market and understand whether your investment has achieved the expected return.

conclusion

In this fast-paced world, on-site funds provide investors with a convenient, low-cost and diversified investment method. By choosing the right on-site fund, investors can achieve their investment goals, thus achieving financial freedom.