It is a trend of the times to buy funds and wealth management products. Many small partners will choose to use their extra funds to buy wealth management products such as funds. After all, the extra money is idle. Why not increase your income by buying wealth management products? There are many kinds of wealth management products, and there are also many products in the fund. So when you invest, you must first understand every product. Today, Bian Xiao will introduce you to what LOF Fund is.

LOF fund is called "Listened Open-Ended Fund" in English and "ListedOpen-EndedFund" in Chinese. In other words, after the issuance of listed open-end funds, investors can purchase and redeem fund shares at designated outlets, or buy and sell funds on exchanges. However, if investors want to sell the fund shares purchased at designated outlets, they must go through certain transfer custody procedures; Similarly, if you want to redeem the fund shares you bought online on the exchange and redeem them at designated outlets, you must also go through certain transfer custody procedures.

LOFs (Listened Open-Ended Funds) is an open-ended fund, which can purchase or redeem fund shares in the OTC market at the same time, and organically link the OTC market and OTC market through the share transfer custody mechanism.

LOF refers to an open-end securities investment fund that is issued, listed and traded on the stock exchange. Listed open-end funds can be subscribed and traded centrally through stock exchanges, and can also be subscribed, purchased and redeemed through fund managers, banks and other consignment agencies. That is, on the basis of keeping the current open-end fund operation mode unchanged, increase the issuance and trading channels of the exchange.

Main features:

(1) Listed open-end funds are still open-end funds in essence, and the total amount of fund shares is not fixed. Fund shares can be purchased and redeemed at the time and place agreed in the fund contract.

(2) The sale of listed open-end funds combines the sales advantages of consignment agencies such as banks and the trading network of Shenzhen Stock Exchange. Banks and other agency outlets still use the current counter sales method, while the trading system of Shenzhen Stock Exchange adopts the popular online pricing and issuance method of new shares.

(3) After the listed open-end fund is approved to be listed and traded on the Shenzhen Stock Exchange, investors can choose to purchase and redeem the fund shares at the closing net value of the fund shares in banks and other consignment agencies, or they can choose to buy and sell the fund shares at the matching transaction price in the member securities business department of the Shenzhen Stock Exchange.

The above is Bian Xiao's knowledge about LOF Fund. When buying a fund, you must analyze it carefully and control the risk of investment, so that you can buy a fund that suits you.