Which is better, on-site fund or off-site fund?
Buying OTC funds is better and more cost-effective than buying OTC funds for the following reasons:
1, the on-site fund fee is lower.
Investors only charge commissions to on-site funds, of which the highest commission rate is not more than three thousandths, which varies from securities company to securities company and is generally two thousandths. However, OTC funds need to pay certain subscription fees, redemption fees, sales service fees, management fees and custody fees, which are higher than those of OTC funds.
2. Funds arrive faster.
When OTC funds are sold, their funds are deposited in the stock account on the same day, which can be used to purchase other funds or wealth management products, and taken out on the next trading day. When the OTC fund is sold, its funds will not arrive on the same day and need to be delayed. Different types of funds arrive at different times, and relatively speaking, off-site funds arrive faster.
3. The transaction is more flexible
Some OTC funds implement T+0 trading mode, that is, investors can buy on the same day and sell on the same day. Compared with OTC funds, their transactions are more flexible.
OTC funds refer to funds that are not listed on the stock exchange but are traded in banks, securities companies, third-party financial platforms or fund companies' direct selling platforms. At present, most funds are OTC funds.
On-site funds refer to securities investment funds that can be listed and traded on the stock exchange like stocks. Common floor funds include closed-end funds, LOF funds, ETF funds and graded funds. There are two investment methods for on-site funds: primary market subscription and redemption and secondary market transaction. The secondary market trading mode of on-site funds is the same as that of stocks, and the share of 100 funds is 1 lot, and the market quotation is used for bidding transactions.