Lof fund is essentially an open-end fund, and the total share of the fund is not fixed. Fund shares can be purchased and redeemed at the time and place agreed in the fund contract.
LOF Fund: English full name is "open listing"
"Fund", known as "listed open-end fund" in Chinese, simply means that after the issuance of listed open-end funds, investors can purchase and conduct centralized transactions through stock exchanges, or purchase, purchase and redemption through fund managers, banks and other consignment agencies. However, it should be noted that the risk of LOF funds is also relatively large, so you must be cautious when purchasing.
Secondly, compared with ordinary open-end funds, lof funds can be traded in real time like stocks, and trading can be more convenient and flexible. Investors can buy and sell in the secondary market to ensure the liquidity of funds.
In addition, the transaction cost of lof funds is relatively low, so it is more cost-effective to buy and sell lof funds on the exchange than to purchase and redeem them inside and outside the exchange. However, compared with ordinary funds, lof funds have fewer types and the amount of a single transaction is limited. Too little will increase the transaction cost and the expected income will be less. Secondly, the investment demand of lof fund is higher than other funds.