The difference between on-site funds and off-site funds is that trading places are different, trading methods are different and trading costs are different. Although OTC funds cannot be bought and sold in the securities market, there are still many channels for buying and selling. They can be purchased from online and offline channels of fund companies, banks, securities companies and other financial institutions, and online platforms such as Alipay and WeChat.

What's the difference between OTC funds and OTC funds?

Trading places are different: OTC funds are simply bought in the primary market-directly from fund companies. After the fund company issues funds, we can buy/sell from the fund company. On-site funds, bought from other investors in the stock exchange, can be understood as buying and selling from the second-hand market.

Different ways of buying and selling: the funds on the floor can only be bought and sold through securities accounts, which are provided by securities companies. When buying and selling funds, they will trade at the real-time price of the funds. Trading OTC funds also requires an account with corresponding channels. For example, if you buy or sell funds in a bank, you have to have a bank account. Buying and selling is called subscription and redemption, and it can't be done immediately.

The transaction cost is different: the transaction cost of on-site funds is usually a handling fee, which is generally around three thousandths, and the maximum is not more than three thousandths. The handling fee is charged by the securities company. OTC fund fees are mainly subscription and redemption fees, which are charged by the fund company, but included in the net value of the fund.