On the floor is the stock market, also known as the secondary market. Off-exchange market is understood as the stock exchange market, that is, the agency sales of banks and securities companies, and the direct sales of fund companies, that is, the familiar open-end fund sales channels. Closed-end funds and ETF funds can only be purchased in the market (for large investors, ETFs can be purchased in the "primary" market), that is, they can only be purchased in the stock market. Other open-end funds can be purchased off-site, which is a well-known way, in which LOF funds can be purchased on-site. Just like off-site subscription, on-site subscription (subscription) can also get dividends, but there is one difference. The fund dividends purchased on the market can only be cash dividends, and cannot be reinvested. Those purchased off-site can be reinvested. Funds that can be redeemed and purchased on the spot can also be redeemed on the spot. The redemption price is the net value announced by the company on the day after the market closes. Buying (stock method) is different from buying (fund method), and selling is different from redemption.
Pay attention to choose your own trading method and choose the correct fund code. For example, 5 10880 trading is the market price on the market, and 5 1088 1 is the net purchase of LOF funds and ETF funds, which can be traded on the market or redeemed off-market. The advantages of on-site trading are obvious. The transaction rate is low: the import and export cost is only 0.3%, which is much cheaper than banks and online direct sales; Fast receipt of funds (T+ 1): both time cost and opportunity cost are dominant; The trading method is flexible and convenient: it can be traded in the business department of a securities company or operated at home or in the office by using the network; More conducive to band operation: seize opportunities in time and avoid risks quickly; If you have time to pay attention: you can also buy the fund at a price lower than the net value of the previous day. For ETFs, the threshold for using cash and a basket of stocks for subscription is generally above 500,000, so for small and medium-sized investors, buying and selling from the secondary market is still a better choice. In addition to the cost advantage, the liquidity of ETF and LOF is similar to that of stocks, that is, after being sold in the secondary market, the time for funds to arrive in the account is T+ 1, while it takes more than T+3 to redeem funds.