Funds are divided into open-end funds and closed-end funds. Closed-end funds are regularly open for subscription and redemption, while open-end funds can be purchased or redeemed at any time. ETF funds and LOF funds are open-end funds, which can be purchased or redeemed from fund companies at any time. They are also trading funds and can be bought and sold through stock accounts.

The biggest difference between ETF funds and LOF funds lies in their subscription and redemption methods. ETF fund means that investors buy ETF fund shares with a "basket" of shares and get a "basket" of shares when redeeming. Therefore, ETF funds need a large amount of money to purchase and redeem, which is generally completed by institutional investors, and individual investors only buy and sell through stock accounts.

LOF funds, whether purchased or redeemed, are exchanged in cash and fund shares. ETF funds are all a basket of stocks, so their positions can be Man Cang, while LOF funds are generally not Man Cang when dealing with the redemption of citizens.

FOF fund

FOF fund is an investment fund, which does not directly invest in stocks or bonds, but indirectly holds stocks or bonds by investing in other funds. Because there is an extra layer of nesting, the transaction cost of FOF fund is higher, but its risk is also lower, which is suitable for people who pursue stable income.

QDII fund

QDII funds refer to funds that invest overseas. The money we buy such funds is RMB, and the fund companies change the money into dollars to participate in overseas market investment, helping investors avoid single market risks.

For example, some investors want to buy US stocks or Hong Kong stocks, and feel that it is too troublesome to open accounts with US stocks and Hong Kong stocks, so they can achieve this goal by investing in QDII funds.