The following are LOF funds prepared by Bian Xiao, that is, listed open-end funds. Investors can purchase and redeem fund shares at designated outlets, or buy and sell funds on exchanges. But compared with etf funds, fewer people buy them. The main reasons are as follows:

LOF funds buy very few people.

1, the market share is too small

An important factor for the inactive trading of lof funds is the small market share, which is mainly due to the fact that lof is designed for the purpose of broadening distribution channels, and its discount premium arbitrage function is low, which is not enough to attract investors to actively participate in secondary market transactions.

2. The cost is too high

Lof funds cost more than etf funds. Other things being equal, people are more willing to hold etf funds.

In addition, lof fund trading is not very active in history. In order to reduce liquidity risk and impact cost, investors usually choose active on-site funds to trade, which leads to inactive funds in history, and trading is still not very active now.

LOF funds buy very few people.

1. Why do lof funds buy fewer people?

Lof fund, that is, listed open-end fund, investors can purchase and redeem fund shares at designated outlets, or buy and sell the fund on the exchange. But compared with etf funds, fewer people buy it, mainly because:

1, the market share is too small

An important factor for the inactive trading of lof funds is the small market share, which is mainly due to the fact that lof is designed for the purpose of broadening distribution channels, and its discount premium arbitrage function is low, which is not enough to attract investors to actively participate in secondary market transactions.

2. The cost is too high

Lof funds cost more than etf funds. Other things being equal, people are more willing to hold etf funds.

In addition, lof fund trading is not very active in history. In order to reduce liquidity risk and impact cost, investors usually choose active on-site funds to trade, which leads to inactive funds in history, and trading is still not very active now.

2. What are the advantages and disadvantages of 2.lof fund?

I advantages of lof fund:

1. Investors have the opportunity to "arbitrage" when buying lof funds. When there is a price difference between the on-site transaction price and the off-site net capital value, the low-priced share can be transferred to the high-priced share through transfer registration to achieve "arbitrage".

2.lof funds have a variety of trading methods. Investors can trade through the exchange phone or the Internet, which changes the traditional "one-on-one" mode of simple counter service and makes the trading method more convenient and faster.

3. Because lof funds are traded on exchanges and need to comply with relevant information disclosure rules, the information disclosure of lof funds will be timely and transparent, so the risks that investors need to face will be relatively small.

4. The online transaction cost of 4.lof funds is relatively low, while the bilateral cost of buying and selling fund shares through exchanges is only 0.5% at most.

Second, the shortcomings of lof fund:

1. Although the varieties of lof funds are more than those traded on exchanges, they are still less than those of ordinary open-end funds and cannot fully meet their investment needs.

2.lof fund is not suitable for fixed investment, because it costs investors more time and energy.

3. Did not attract the attention of investors. Many investors simply purchase lof funds as ordinary open-end funds, which makes a large number of lof fund shares precipitate off-site.

4. It is difficult for investors with small capital to achieve arbitrage.

Why do LOF funds buy fewer people?

1, an important factor in the inactive trading of LOF funds is the small market share, which is mainly due to the fact that LOF is designed to broaden the distribution channels, and its discount premium arbitrage function is low, which is not enough to attract investors to actively participate in secondary market transactions.

2. The cost of 2.LOF fund is higher than that of etf fund. Other things being equal, people are more willing to hold etf funds.

3.LOF funds are not very active in trading history. Investors usually choose active on-site funds to trade, so as to reduce liquidity risk and impact cost, resulting in historically inactive funds, and trading is still not very active.

4. At present, the number of LOF funds in the market is small, and investors who need to invest in high-risk funds and low-risk funds at the same time cannot fully meet their investment needs.

Although LOF fund has broadened its purchase channels, its own shortcomings have led to little interest from investors. If LOF funds can be improved in the future, the trading volume may increase. That's all. I hope it helps you.

Few people buy LOF funds for the following reasons:

1 and LOF funds have higher transaction risks.

Because LOF fund belongs to high-risk wealth management products, although the expected return is high, the wealth management products with high expected return are often risky, so if investors are stable investors with low risk tolerance, then they are not suitable for investing in LOF funds.

2. The number of funds is small and the selectivity is small.

LOF has fewer types of transactions and less funds. Although there will be more types of listed open-end funds than ordinary exchanges, they are still less than ordinary open-end funds. Perhaps these types can not meet the investment needs of investors at present, especially for those investors who like to invest in high-risk funds and low-risk funds at the same time, LOF funds can not meet their needs.

3. The transaction cost is high.

LOF funds have many transaction costs, including subscription fees, redemption fees, operating fees (management fees, custody fees, sales and service fees) and so on. The subscription fee is calculated according to the transaction amount, and the larger the transaction amount, the smaller the subscription fee; The redemption fee is calculated according to the holding time of the fund. The longer the fund is held, the lower the redemption fee, or even the redemption fee is zero. Operating expenses will not be charged to investors separately, but will be accrued in the daily fund assets and paid monthly.

4. It is impossible to make a fixed investment in the fund.

Fixed investment is a common investment method in the market, but LOF funds need investors to take the initiative in the transaction process, so it is not suitable for fixed investment. And the amount of a single transaction is limited, neither more nor less.

5. Decreased market share.

One of the reasons for LOF fund's low market share may be that its investment threshold is high, arbitrage operation is difficult, and it is difficult to obtain additional income, so most investors will choose ETF funds for trading.

6. The investment cost is high.

This is a good thing, because LOF fund trading is too fast and convenient. However, due to its frequent transactions, LOF fund transactions need to charge a certain fee, so long-term accumulation will increase investment costs.