How to distinguish between OTC and OTC funds
With the continuous development of the fund market, investors pay more and more attention to the on-site and off-site transactions of funds. It is difficult for beginners to tell the difference between them. This paper will introduce how to judge the difference between OTC and OTC funds and the difference between them.
What are the on-site and off-site funds?
On-exchange funds refer to funds listed on the stock exchange. Investors can trade through securities accounts and can buy and sell during trading hours. Over-the-counter trading of funds refers to investors buying and selling through fund companies or banks outside the trading hours on the market. Generally speaking, OTC funds need to be purchased or redeemed in advance, and the trading time is more flexible.
How to judge the off-site and on-site of the fund?
1. code of observation fund
The code of a fund usually includes letters and numbers, where the letters represent the type of fund and the numbers represent the number of the fund. The code of OTC funds usually starts with "5" or "16", and the code of OTC funds starts with other numbers. Investors can judge the trading places of a fund by its code.
2. Check the fund information disclosure.
Investors can obtain the information disclosure of funds through fund companies, stock exchanges or fund consignment agencies, and understand the trading places and methods of funds. Generally speaking, the fund company will specify the trading place and mode of the fund in the prospectus or fund contract.
3. Query the fund transaction records
Investors can inquire about the trading records of the Fund through the stock exchange or the fund company official website to understand the trading situation of the Fund. Generally speaking, funds traded on the floor appear in the trading records of the stock exchange, and funds traded over the counter do not appear in them.
The difference between on-site and off-site funds
1. Different trading methods
Funds traded on the floor can be bought and sold through securities accounts, and the trading time and price are more transparent. OTC funds need to be purchased or redeemed in advance, and the trading time is more flexible, but the price may be affected by the fund company.
2. The subscription fee is different from the redemption fee.
Funds traded on the floor usually need to pay commissions and transaction fees, and the fees for subscription and redemption are also high. Funds traded over the counter usually do not need to pay commissions and transaction fees, and the fees for subscription and redemption are relatively low.
3. Suitable for different investors
Funds traded on the floor are suitable for short-term investment and high-frequency trading, and are suitable for investors who are sensitive to the market. OTC funds are suitable for long-term investment and fixed investment, and are suitable for stable investors.
The on-site and off-site trading methods of funds are different, and investors can judge the trading place of funds through fund codes, information disclosure and trading records. When choosing a fund, investors should choose a fund that suits them according to their investment objectives and risk preferences.