Is the on-site fund the same as the off-site purchase and redemption method?
The purchase and redemption methods of OTC funds and OTC funds are different because of the different trading places. OTC funds are the same as stock trading. Investors need to open trading accounts in securities companies first, and then trade on the exchange, while off-exchange funds are not so constrained. Many third-party platforms can buy and sell OTC funds without opening an account.
On-site fund trading is a transaction between investors, and the transaction will not affect the fund size and total share. OTC fund is a transaction between investors and fund companies, which will affect the total share of the fund according to the net value of the fund.
Although the trading methods are different, the trading time is the same. The trading hours of the Fund are from 9: 30am to15: 00pm and from 0: 30am to13: 00pm every working day. On-site funds can't be traded during the closed period, while off-site funds can be entrusted for trading, but it can't be confirmed until the trading day.
For example, you can't buy OTC funds on weekends, but you can't confirm them until next Monday, which is the same as buying and selling next Monday. Therefore, it is not recommended that you buy funds on weekends. After all, the money you bought was deducted, but the share was not confirmed on the same day. If you don't confirm the share, naturally you can't generate income. It is better to put this money somewhere else and earn interest for two more days.
Although the purchase and redemption methods of on-site funds and off-site funds are different, there are still many similarities between them. For example, the trading time of funds depends on the trading time of stocks, and the closing price is usually reported at night. Each fund has only one net value a day, and the net value of on-site funds is updated in real time, while the net value of off-site funds is updated only once a day.