I. Characteristics of on-site funds
On-site fund is a publicly issued fund, which invests in financial products such as stocks, bonds and ETFs. As an open-end fund, users can purchase and redeem at any time. Different from the fund subscription method, the trading of on-site funds is completed through exchanges, and investors can buy and sell through securities companies during trading hours, so the trading method is more flexible and more liquid.
Second, the advantages of on-site funds
The advantage of on-site funds is that their transactions are more flexible and convenient. Compared with OTC funds, investors can buy and redeem OTC funds at any time after listing, which is convenient and fast. The price of OTC funds can change at any time, which is not much different from the net value of funds. Therefore, it is more convenient for investors to obtain greater income by controlling the buying and selling prices. In addition, the trading of on-site funds is completed in the exchange, so it is more transparent in the trading process, and it is convenient to understand the risks and benefits of funds.
Third, the lack of funds in the venue.
Although the floor fund has some advantages, it also has some disadvantages. First of all, the transaction cost is relatively high, and the transaction needs to pay commission, transaction fee and transaction tax, so it may have a certain impact on the investment income of investors. In addition, the trading time on the floor is relatively short, and only when the exchange opens can it be traded. Market fluctuation will bring challenges to investors.
4. Is the on-site fund suitable for long-term holding?
Different investment methods are suitable for different investors. We believe that the floor fund is still suitable for short-term investment, because the liquidity and trading flexibility of the floor fund allow short-term investors to buy and sell at the right time and get quick investment income. For long-term investors, OTC funds are more suitable, because long-term investment needs to adhere to long-term investment concepts and strategies, which requires trading in the short term to obtain long-term investment income.
To sum up, the flexibility and transparency of OTC funds are its advantages, but compared with a single type of fund, OTC funds are relatively more stable and have more stable long-term investment income. Therefore, investors should choose their own investment methods according to their own needs and characteristics to avoid unnecessary risks due to various reasons.