With the development of investment and wealth management market, on-site funds have become the choice of more and more investors. But for some novice investors, they may not know much about the funds on the market. So what is an on-site fund? Why do fund prices fluctuate frequently? We have also prepared relevant contents for your reference.

What is a floor fund?

On-site funds refer to securities investment funds that can be listed and traded on the stock exchange like stocks. Common on-site funds mainly include ETF and LOF. ETFs, also known as transactional open index funds, generally track specific indexes and replicate index performance by holding index constituent stocks, such as Shanghai and Shenzhen 300ETF and Shanghai 50ETF. The advantages of ETF are high transparency and good liquidity. LOF, also known as listed open-end fund, is characterized by both on-site transactions and off-site subscription and redemption. The advantages of LOF are lower transaction rate and more flexible trading methods.

Why do fund prices fluctuate frequently?

1, affected by investor sentiment. Investors' emotions and expectations will have an impact on the price of funds in the market. When the mood of market investors is unstable or changes rapidly, the price of funds in the market will fluctuate greatly in a short time. When investors are optimistic about the market prospects, they will increase the demand for funds in the market and push up the price. On the contrary, when investors are pessimistic or there are uncertain factors in the market, they may choose to sell the funds in the market, which will lead to the price drop.

2. Affected by the size of the on-site fund. The scale of the floor fund will also have an impact on its price fluctuation. Smaller on-site funds are relatively more susceptible to large-value transactions, because the circulation share is small and the market liquidity is weak, which may lead to frequent price fluctuations when there are large-value transactions.