1, Lof funds can be traded over the counter, and investors can use this function to arbitrage.

2. Simply put, lof has increased the on-site trading of open-end funds. The purchased fund shares can be sold on t+ 1 day, and the fund funds sold according to the securities trading settlement method can be used on the same day. T+ 1 can be withdrawn. Compared with over-the-counter trading, buying the day before buying and selling the day before redemption is at most 6 days in advance.

3. Investors can reduce transaction costs by trading funds in the secondary market, usually by 0.5% through mutual ETF units.

Disadvantages:

1 and lof have more varieties than exchange traded funds (ETFs), but they are still less than ordinary open-end funds. Therefore, for those investors who need to invest in both high-risk funds and low-risk funds, the existing varieties of lof funds still cannot fully meet their investment needs.

2. It is difficult for investors with small capital to achieve arbitrage.

What is lof Fund?

The full name of lof fund is listed open-end fund, namely "listed open-end fund". However, if investors buy fund shares at designated outlets and want to sell them online, they must go through certain transfer custody procedures; Similarly, if you buy fund shares online on the exchange and want to redeem them at designated outlets, you also need to go through certain transfer custody procedures. According to the Shenzhen Stock Exchange, the redemption funds in the market have been opened, and the LOF subscribed in the market can be sold directly without going through custody procedures.