Funds are divided into on-site funds and off-site funds according to different trading places.
The floor is the stock market, and the floor funds are funds listed and traded on the exchange, such as closed-end funds and ETF funds, which can only be purchased through the floor.
OTC funds are funds that can be sold by banks, securities companies, third-party fund platforms and fund companies except the stock market.
On-site funds and off-site funds have their own advantages and disadvantages. It is not necessarily said which fund is more suitable for investment. Everyone chooses according to their own situation and preferences.
Advantages and disadvantages of OTC and OTC funds:
If you want to buy the floor fund, you need to open a securities account first, and the floor fund needs to trade through the securities account, which is also the limitation of the trading channels of the floor fund.
On-site funds have two obvious advantages. First, the settlement system is faster.
On the same day, the on-site fund submits an application for selling, and the transaction price is subject to the transaction price at that time. The funds will be returned to the account in time and can be collected the next trading day.
Second, the charge is lower. On-site funds only charge trading commissions, which are generally the same as those for buying and selling stocks. Unless specially set, the handling fee of stock accounts is now a low commission trend, and the commission of most stock accounts is around 23,000.
Characteristics of OTC funds:
OTC funds do not need to open stock accounts, but can trade through banks, brokers, third-party fund platforms, fund companies and various consignment platforms. Trading channels are very rich, which is also the advantage of OTC funds.
The trading methods of OTC funds include subscription, subscription and redemption.
OTC funds have other advantages. For example, for OTC funds, you can set the way of automatic fixed investment and set the time and amount of deduction. At the set time, the account will automatically trade investment funds, which is simply good news for those who want to save money and have no time to do financial management.
The variety and quantity of OTC funds are very rich, which can basically meet the needs of various investors from the perspective of risks and benefits.
However, an obvious disadvantage of OTC funds is that the transaction speed is relatively slow. The settlement system of the fund is T+2 transaction, which means that if you purchase a fund today, you can't find the results of the purchase until the second trading day, and you can't sell the fund until at least the third trading day.