What's the difference between on-site fund selling and redemption?
The transaction objects of 1 are different: the transaction object of selling the floor fund is other investors, and the transaction object of redeeming the floor fund is the fund company.
2 Price difference: The price for selling the floor fund is the transaction price, which is generated according to the bidding rules of the exchange, and the redemption of the floor fund is subject to the net value.
3 Different thresholds: the trading unit of the floor fund is one hand, that is, one hundred shares, and the redemption of many floor funds requires a starting point of 500,000 shares or 1 10,000 shares.
At present, there are three forms of on-site funds, namely ETF, LOF and traditional closed-end funds. The first two can be purchased, redeemed and traded, while the latter can only be traded in the secondary market, and cannot be purchased and redeemed.