Compared with over-the-counter funds, on-exchange funds have low fees, T+0 for some varieties, higher positions, and smaller tracking errors. These are not the only advantages.

However, if you are making long-term fixed investments or are new to new funds, Coco still recommends that you choose OTC funds. Why is this?

First, in terms of convenience, OTC funds are the first choice.

Fixed investment cannot be set for on-site funds, and the brokerage account cannot directly debit our bank card. You must first manually transfer the money from the bank card to the brokerage, and then set up the subscription and redemption. If you have long-term fixed investment, weekly fixed investment, daily fixed investment, do you have to operate it once every week/day? Obviously very troublesome! Monthly investment? I often forget!

OTC funds can be set to automatically deduct money from bank cards. Select the fund and set the amount and frequency of deductions, and you can really make money from now on. If you make subsequent adjustments, you can also modify the amount of the fixed investment plan. Basically, the fixed investment modification interfaces of all platforms are simple and easy to use.

Nowadays, many platforms have launched intelligent fixed investment, smart fixed investment, etc., which adjust the purchase amount through data calculation, realizing the wish of some friends to "select the time" scientifically.

Second, from a risk perspective, OTC funds have a lower risk coefficient.

This is also the main reason why Coco recommends that friends buy funds mainly off-market and allocate a small amount on the market.

When buying and selling OTC funds, we deal directly with the fund company. The starting investment threshold is low, and many can be purchased for ten or 100 yuan at a time, and the redemption share can be set at will.

A single transaction of an exchange-traded fund requires 100 shares, and the starting investment threshold is slightly higher. What's more critical is that on-site funds trade with other investors. If the scale of the on-site fund is not large enough and the daily trading volume is inactive, there will be a problem of insufficient liquidity. What may happen is that we want to sell but cannot sell, or we want to sell but cannot buy.

In addition to the risks of being inactive, on-market funds also see discounts and premiums, which bring higher risks to investment. This is also caused by the characteristics of on-site funds.

The price of on-site funds fluctuates in real time during the trading stage, so from time to time there will be situations where a certain on-site fund is considered to be inflated and is much higher than the actual price. This is called "premium" ". If you buy it at this time, you will probably be called the legendary "taker". If the trading volume of a certain on-market fund is not active enough, it may result in us having to continuously reduce the price to sell it, which is a "discount".

Third, from the perspective of energy consumption, OTC funds are more worry-free.

Regardless of whether the fund is on or off-market, our actual investment purpose is to enjoy the long-term returns of the market through a basket of stocks. What we need to do is to continue to buy, hold for a long time and wait for profits.

But on-exchange funds are just like buying stocks. For the same thing, the price may suddenly differ by 5% or even 10% during the trading stage. You will definitely not be able to help but look at it, and another thing will appear. The situation where my emotions are always tied by a thread all day long. You always think: Let me see if I can get it cheaper? Let me see if I can sell it higher?

Especially for novices, it is difficult for them to have the self-control to not be influenced by market sentiment, and then buy and sell impulsively, turning fund buying into stock trading. You can't help but want to "time it", but it's easy to miss buying opportunities again and again.

Since it is a long-term investment, and since it is left to the fund company to take care of, we choose to invest off-market, which is more "Buddha", which is actually better!

To sum up, OTC funds are the most worthy of the name "lazy people's investment". Of course, OTC funds are the first choice for long-term fixed investment.