The full name of LOFs fund is SSE 180 Linked Trading Open Index Securities Investment Fund, which is a trading open-end fund associated with the SSE 180 Index in the stock market.
LOFs funds have higher investment flexibility and high cost-effectiveness ratio than traditional index funds.
Because the investment objective of LOFs funds is to track and replicate a selected stock index, and shares of such funds can be bought and sold on stock exchanges during trading.
It is also more flexible and convenient because it can be traded across markets.
What are the advantages and disadvantages of LOFs funds?
The investment risk of LOFs funds is equivalent to market trends.
The trading method of LOFs is more convenient. For investors, compared with ETFs and index funds, the trading of LOFs is more flexible and convenient.
At the same time, LOFs funds also have an obvious advantage, that is, they can be traded in multiple markets and are more liquid than other funds.
At the same time, LOFs funds inevitably have some shortcomings, such as high management fees, high transaction costs and high market risks, which require investors to consider clearly.
Investing in LOFs funds requires investors to understand the operating conditions of the fund company, the fund's income, the experience and evaluation of the fund manager and other important factors.
At the same time, you also need to understand the risks and returns of a single security, and understand whether the selected fund meets your personal risk qualities and needs.
In addition, factors such as the fund's share and price also need to be carefully studied in order to make investment decisions.