The main reason why the net value of the same fund is different on and off the market is that the price formation mechanism is different. Because the total share of closed-end funds is fixed, investors can only buy the share of others if they want to buy the fund, which is the form of stock secondary market trading.

In the open-end fund purchase, the fund company can allocate new shares to investors, and there is no need to make a deal between investors. There are three kinds of funds traded on the floor: closed-end funds, LOF and ETF.

Note:

(1) According to whether the fund unit can be increased or redeemed, it can be divided into open-end funds and closed-end funds. Open-end funds are not traded on the market (it depends on the situation), and the fund size is not fixed through subscription and redemption by banks, brokers and fund companies; Closed-end funds have a fixed duration, generally listed and traded in securities exchanges, and investors buy and sell fund units through the secondary market.

(2) According to different organizational forms, it can be divided into corporate funds and contractual funds. Funds are established by issuing fund shares to establish investment fund companies, which are usually called corporate funds; Fund managers, fund custodians and investors are established through fund contracts, which are usually called contractual funds. China's securities investment funds are all contractual funds.