Many people have seen the names of funds such as ETF, LOF and FOF. Old funders should know what they mean, but some novices who have just come into contact with funds may not know the so-called. Let me give you a brief introduction today.

1. ETF funds and LOF funds are divided into open-end funds and closed-end funds. Closed-end funds are open for subscription and redemption on a regular basis, while open-end funds can be purchased or redeemed at any time. ETF funds and LOF funds are open-end funds, which can be purchased or redeemed from fund companies at any time. They are also trading funds and can be bought and sold in stock accounts. The biggest difference between ETF funds and LOF funds is their subscription and redemption methods. ETF fund is that investors use a "basket" of stocks to purchase ETF fund shares, and they also get a "basket" of stocks when they redeem them. Therefore, the amount of funds needed to purchase and redeem ETF funds is large, which is generally done by institutional investors, and individual investors only buy and sell through stock accounts. LOF funds, whether purchased or redeemed, are exchanged with cash and fund shares. ETF funds are all a basket of stocks because of their subscription and redemption, so their positions can be Man Cang, while LOF funds will generally not be Man Cang when dealing with the redemption of citizens.

second, FOF fund FOF fund is a kind of investment fund, which does not directly invest in stocks or bonds, but indirectly holds stocks or bonds by investing in other funds. Because of an extra layer of nesting, the transaction cost of FOF fund is higher, but its risk is also lower, which is suitable for people who pursue stable expected returns.

third, QDII funds QDII funds refer to funds that invest overseas. The money we buy from such funds is RMB, and the fund companies change the money into US dollars to participate in overseas market investment, helping investors avoid single market risks. Some investors want to buy US stocks or Hong Kong stocks, and feel that it is too troublesome to open an account for US stocks and Hong Kong stocks, so they can achieve this goal by investing in QDII funds. Well, that's all for today's article. I hope it will help you. Know yourself and know yourself, and fight every battle. I hope that my friends can pick the right fund.