At one time, many investors didn't know the difference between OTC funds and OTC funds. What did the so-called OTC funds mean? Today, we compare on-site funds and off-site funds from nine aspects to help you know more about on-site funds and off-site funds, and know more clearly whether to invest in on-site funds or off-site funds.

"market" refers to the exchange. Funds traded on the exchange are on-site funds, while those not traded on the exchange are off-site funds. Or we can say that the funds traded in Shanghai Stock Exchange and Shenzhen Stock Exchange are on-site funds.

1. The trading mechanism is different

The trading mechanism of on-site funds, like stocks, is a matchmaking transaction, and your opponent is another investor. OTC funds buy and sell fund shares from fund companies, and their counterparties are fund companies.

2. Different trading channels

On-site funds are traded on exchanges, and they can only be bought and sold with securities accounts. Off-site funds can be sold on a commission basis through fund companies, banks and other third-party platforms, and traded with securities accounts.

3. The transaction price is different

The on-site fund price changes in real time, and the prices bought at different times on the same trading day are different. Off-site funds only publish one fund net value every trading day, and the shares confirmed on the same trading day are the same price.

4. Different investment methods

Off-exchange funds can choose one-time investment or set fixed investment, while on-exchange funds cannot set fixed investment.

5. Different transaction costs

The transaction costs of OTC funds are similar to those of stocks, and they charge commissions, while OTC funds charge subscription fees and redemption fees. The transaction costs of OTC funds are higher than those of OTC funds.

6, the number of funds is different

The number of on-site funds is more effective, there are not many products to choose from, and the number of off-site funds is huge, and the range of choices is very large.

7. Different trading thresholds

Generally, the lowest on-site fund is 1 yuan, and there are many off-site funds purchased from 1 yuan.

8. Different liquidity of funds

Under normal circumstances, on-site funds have stronger liquidity, which can be redeemed on the same day, and the funds can continue to be invested on the next trading day. After off-site funds are redeemed, the funds usually arrive in the account within T+1 to T+4 working days. 9. Dividends are different. On-site funds only receive cash dividends, while off-site funds have cash dividends and dividends for reinvestment.