In terms of rate, the transaction rate in the venue will be cheaper. The rate of a transaction is actually the transaction commission, which depends on the transaction commission rate agreed by the user and the securities company. Generally speaking, the proportion of transaction commission is lower than that of counter redemption, which means the rate is more cost-effective.

In addition, on-site trading is more efficient, and you can basically buy or sell on the same day. For off-exchange redemption, the fund company may have to liquidate, and finally it may be delayed for one or two days. This is the efficiency of funds.

Extended data:

Precautions:

It takes two working days to transfer custody, that is, T+0 days to handle it and T+2 days to redeem it. Within two working days after the transfer of custody, the net value of the fund unit may not change much, but the transaction price in the secondary market may fluctuate greatly.

Therefore, the only way for citizens to use LOF funds is: when the present value of LOF funds is higher than the secondary market price, the fund buys LOF funds through the exchange, and then transfers all LOF funds into bank accounts and redeems them.

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LOF Expected Trend of People's Network-Graded Fund Transformation