Funds are divided into on-site funds and off-site funds according to different trading places. On-site funds mean the stock market. On-market funds are funds listed and traded on the exchange, such as closed-end funds and ETF funds, which can only be purchased on the market. OTC funds refer to funds that can be sold by banks, securities companies, third-party fund platforms and fund companies except the stock market. On-site funds and off-site funds have their own advantages and disadvantages. It is not necessarily said which fund is more suitable for investment. Everyone chooses according to their own situation and preferences, and we can understand the advantages and disadvantages of OTC funds and OTC funds respectively.

Characteristics of on-site funds

If you want to buy the floor fund, you need to open a securities account first, and the floor fund needs to trade through the securities account, which is also the limitation of the trading channels of the floor fund. The trading of on-site funds is very similar to the stock trading software of securities companies. If you are an investor with experience in stock trading, it is easy to invest in the floor fund, which is similar to buying stocks. When trading, just enter the fund code and select the number to buy. There are two on-site funds. On the same day, the on-site fund submits an application for selling, and the transaction price is subject to the transaction price at that time. The funds will be returned to the account in time and can be collected the next trading day. Second, the charge is lower. On-site funds only charge trading commissions, which are generally the same as those for buying and selling stocks. Unless specially set, the handling fee of stock accounts is now a low commission trend, and the commission of most stock accounts is around 23,000. There are also some deficiencies in the funds in the venue. Every transaction needs manual operation, and the number of funds issued on the market is small, so it may be difficult to build a fund portfolio that fully meets your own needs.

Characteristics of OTC funds

OTC funds do not need to open stock accounts, but can trade through banks, brokers, third-party fund platforms, fund companies and various consignment platforms. Trading channels are very rich, which is also the advantage of OTC funds. OTC funds are traded by subscription and redemption. OTC funds also have some other advantages, such as automatic fixed investment, setting the time and amount of deduction, and the account will automatically trade investment funds after setting the time, which is simply good news for those who want to save money but have no time to do financial management. The variety and quantity of OTC funds are very rich, which can basically meet the needs of various investors from the perspective of risks and benefits. However, an obvious disadvantage of OTC funds is that the transaction speed is relatively slow. The settlement system of the fund is T+2 transaction, which means that if you purchase a fund today, you can't find the results of the purchase until the second trading day, and you can't sell the fund until at least the third trading day.

The advantages and disadvantages of OTC and OTC funds are compared. If you have some experience in stock trading, it is easier for OTC funds to get you started. If you are a complete investor, OTC funds may be more suitable for you, because trading will be simpler.