1. What's the difference between OTC funds and OTC funds?
First of all, we must clarify the concepts inside and outside the fund. On-site refers to the way of buying and selling funds over the counter of securities companies, and off-site refers to buying and selling funds on stock exchanges. In other words, if you want to buy and sell funds on the stock exchange, then you must choose OTC funds.
Second, the advantages and disadvantages of OTC funds
1, advantages
(1) low rate
Relatively speaking, the rate of OTC funds will be much lower than that of OTC funds. Because OTC funds have more convenient trading channels, unnecessary intermediate links can be reduced, and the rate is relatively low.
(2) promoting transactions
Compared with OTC funds, OTC funds are more convenient to open accounts or trade. You can trade directly in securities companies or online without queuing at the counter.
2. Deficiencies
(1) Transaction delay
Since OTC funds need to be traded on the stock exchange, the transaction delay will be more obvious than OTC funds. In the case of large fluctuations in the market, OTC funds may be "not bought at the daily limit" or "not sold at the daily limit".
(2) The operating threshold is high
If you have no experience in securities trading, it will be relatively difficult to buy a fund counter. Because in addition to opening a securities account, you need to master certain trading skills.
Third, the advantages and disadvantages of on-site funds
1, advantages
(1) Deal in time
Compared with OTC funds, OTC funds trade faster, because OTC funds are directly connected with the stock exchange, so the transaction will be more timely.
(2) simple operation
Before buying the on-site fund, you only need to open an account with a securities company to buy it. Moreover, after the purchase, the fund manager will be responsible for the transaction of the fund, and investors do not need to do too many operations.
2. Deficiencies
(1) high speed
Compared with off-exchange funds, the rate of on-exchange funds will be higher. Because the on-site fund needs to pay extra management fees and counter fees.
(2) There are many intermediate links
Compared with over-the-counter funds, the transaction of over-the-counter funds also needs to go through the intermediate links of securities companies, which will lead to the deviation between the net value of fund shares and the market value.
4. Is it better to buy funds on or off the market?
Can it be said that it is better to buy an OTC fund or an OTC fund? From the above analysis, we can find that there is no certain rule in the choice of different scenes. Generally speaking, we can choose according to the following actual conditions:
1. Selection of on-site funds
(1) If your trading capital is low, don't worry about the high handling fee.
(2) If you are relatively unfamiliar with the market operation, the on-site foundation is a better choice.
(3) If your trading frequency is low, then the floor fund is more suitable.
2. Choice of OTC funds
(1) If your transaction is to invest in different products of a fund company, the OTC fund is a better choice.
(2) If you have rich experience in securities trading, then OTC funds may be more suitable for you.
(3) If you trade frequently, then OTC funds are a better choice.
Generally speaking, we should choose according to our own actual situation. Because everyone's actual situation is different, the choice of funds is also different, which is the key to our investment decision.