This paper will discuss the rates of on-site funds and off-site funds. On-site funds refer to funds listed and traded on the exchange, and off-site funds refer to funds sold in fund companies. When investing in funds, the rate is an important consideration. The following will analyze which rate is lower from different angles.
The rates of on-site funds and off-site funds are collected by fund management companies, mainly including sales service fees, management fees and custody fees. Among these expenses, the expenses of on-site funds and off-site funds are the same. On-site funds and off-site funds have different rates when trading.
From the perspective of transaction cost, the transaction cost of on-site funds is usually lower than that of off-site funds. Because the floor fund is listed on the exchange, investors can buy and sell directly through the securities account, and the transaction cost is usually only about one thousandth. OTC funds need to be sold through fund companies, and investors need to pay a certain sales service fee, which is generally around five thousandths. OTC funds also have subscription and redemption fees, which usually require investors to pay a certain fee.
From the perspective of management fees, the rates of on-site funds and off-site funds are also different. Generally speaking, the management cost of on-site funds is lower than that of off-site funds, because the scale of on-site funds is larger and the management cost is lower. OTC funds are usually small in scale and have relatively high management costs.
From the perspective of transaction cost and management cost, the rate of on-site funds is low. When choosing an investment fund, the rate is not the only consideration, but also the investment strategy and performance of the fund.
As an investor, it is very important to choose a fund that suits you. When choosing, we need to consider all factors comprehensively in order to make a correct investment decision.