However, if you are a long-term fixed investment or a novice who is relatively exposed to new funds, coco still recommends that you choose an OTC fund. Why?
First, in terms of convenience, OTC funds are preferred.
On-site funds cannot be fixed, and brokerage accounts cannot be directly deducted from our bank cards. We must manually transfer the brokerage from the bank card first, and then set up the redemption application. If long-term fixed investment, weekly fixed investment and daily fixed investment, we must operate once a week/day? Obviously very troublesome! Fixed monthly investment? I often forget!
Over-the-counter funds can automatically deduct money from bank cards, and choose a good fund-set the amount and times of deduction, so that they can really make money from now on. You can also make subsequent adjustments to modify the amount of the fixed investment plan. Basically, the fixed investment modification interface of all platforms is very simple and easy to use.
Nowadays, many platforms have launched smart fixed investment and smart fixed investment. And adjust the purchase amount through data calculation to realize the desire of some small partners to scientifically "select the time".
Second, from the perspective of risk, the risk coefficient of OTC funds is lower.
This is also the main reason why coco suggested that friends buy funds mainly off-site, with a small amount of configuration in the field.
To buy and sell OTC funds, we deal directly with fund companies. The initial investment threshold is low, and many people can buy it at a time of 10 yuan 100 yuan, and the redemption share can also be set at will.
On-site fund funds need 100 for first-hand transaction, and the threshold for initial investment is slightly higher. More importantly, the funds in the market are traded with other investors. If the funds in the market are not large enough and the daily trading volume is not active, there will be insufficient liquidity. What may happen is that you can't sell it if you want to, and you can't buy it if you want to.
In addition to being inactive and risky, the funds on the market also have a discount premium, which brings higher risks to investment. This is also caused by the characteristics of the funds in the venue.
The price of floor funds fluctuates in real time during the trading stage, so from time to time, some floor funds are considered speculative, which is much higher than the actual price. This is called "premium". If you buy at this time, it is probably the legendary "receiver". If the trading volume of on-site funds is not active enough, it may lead us to sell at a reduced price, which is called "discount".
Third, from the perspective of energy loss, off-site funds are more worry-free.
Whether the fund is on or off the market, the purpose of our investment is to enjoy the long-term benefits of the market through a basket of stocks. What we should do is to keep buying and hold the waiting income for a long time.
However, the floor fund is the same as buying stocks. In the trading stage, the price may be 5% or even 10% at once, and you will definitely be tempted to see it. This is also the case, the mood is always tied with a thread all day. You always think: I'll see if I can get it cheaper. Let me see if I can sell it higher.
Especially for beginners, it is difficult to have the self-control to protect themselves from the influence of market sentiment, and then buy and sell impulsively, and abruptly turn buying funds into stock trading. I can't help but want to "choose the right time", but it's easy to miss the buying opportunity again and again.
Since it is a long-term investment, since it is given to the fund company to take care of it, in fact, it is better for us to invest outside the market, which is more "Buddha"!
To sum up, OTC funds are the most veritable "lazy investment", and OTC funds are of course the first choice for long-term fixed investment.