Is LOF fund a T+0 transaction?
Some LOF funds are T+0 transactions, and some are not. LOF has increased the on-site trading of open-end funds, and the purchased fund shares T+ 1 can be sold. If you refer to the settlement method of securities transactions, you can withdraw cash at T+ 1 If users choose to invest in LOF funds, they can adopt the investment strategy of superposition arbitrage to obtain excess returns.
LOF funds can be traded on and off the market at the same time, and can also be bought and sold in the exchange market like stocks. Like ordinary open-end funds, you can purchase and redeem fund shares normally at designated outlets. Under normal circumstances, LOF funds can be traded on and off the market, and investors can use this function to arbitrage.
However, when purchasing LOF funds, users should pay attention to the fact that some LOFs in the market have small trading volume and insufficient trading volume, resulting in poor liquidity. Users can't buy large sums of money when investing in these fund products. LOF has both active management and passive tracking of stock indexes. Whether it is subscription or redemption, it is converted into cash.
In the investment market, the most important thing for T+0 trading is that it must have a large enough volume. If the transaction volume is insufficient, it will have a very large impact cost in the process of buying and selling, and it is difficult to make a profit.