There are many types of funds, and different funds have different contents according to different methods. According to different fund trading venues, they are divided into on-exchange funds and over-the-counter funds. So, what is the difference between on-exchange funds and over-the-counter funds, which one is better? Let’s take a look together next.

1. Different trading mechanisms

OTC funds are bought and sold through fund companies, banks, and third-party fund sales platforms. We directly subscribe for fund shares through these channels; on-market funds Investors trade with other investors, that is, investors buy funds that other investors sell, similar to buying and selling stocks.

2. Different purchasing methods

OTC funds can be purchased through fund companies, banks, securities firms, and third-party sales platforms; on-site funds can only be bought and sold through securities trading software.

3. Investment thresholds are different

For over-the-counter funds, the investment threshold is very low. You can invest with 10 yuan; on-site fund trading is similar to stocks, and you need to buy at least 1 lot. , that is, a 100-share fund, so the capital threshold will be relatively high.

4. Rates are different

The transaction rates for OTC fund platform transactions are also different. Now many third-party sales platforms offer discounts, usually 10% off, and the redemption fee is 3 There is no redemption fee for those over 10 years old.

The fees for on-site funds depend on the commission of the securities firm where you open an account. The commission is the same as for securities transactions and can be discussed with the investment manager.

5. There are differences in liquidity

The liquidity of on-exchange funds is relatively good, and the redemption time of fund redemption is faster; the redemption time of OTC funds is relatively slow. .

6. The number of funds that can be selected is different

There are many OTC funds, so there is a lot of room for choice; there are few on-market funds, and there are few types, so there is little room for choice.

That’s all the above about the difference between on-exchange funds and over-the-counter funds, which one is better, I hope it will be helpful to everyone. Warm reminder, financial management is risky, so investment needs to be cautious.