Many investors have a soft spot for index funds, especially ETFs.
ETF subscription and redemption are different from traditional open-end funds. There are three forms of online cash subscription, offline cash subscription and offline stock subscription. So what is the difference between online cash subscription and offline cash subscription of ETF?
1. The subscription channel ETF is an on-exchange fund, and the subscription method is similar to buying stocks.
The so-called online and offline are not the Internet in the general sense, but the online trading system of the exchange.
The main difference between the two is that online cash subscription requires ETF subscription instructions to be submitted through the counter of the securities company's business department, telephone commission and online trading system. Investors can cancel the subscription application within the trading hours of the day after the application is submitted.
Offline subscription is to subscribe for fund shares through various business outlets of securities companies. After submitting the subscription application, the securities company will submit the subscription information together with the online cash subscription in the last three days.
2. After submitting the subscription instruction for online cash subscription of fund transfer, the subscription funds will be frozen in real time, and the funds will be cleared and deducted on the same day.
Online cash subscriptions are only frozen and not transferred. The funds will not be transferred to the fund raising account until after the deadline for offline cash subscriptions.
3. Subscription share The minimum share for both online cash subscription and offline cash subscription is 1,000 shares, which can be converted into an amount of 1,000 yuan. If the amount exceeds the subscription amount, it must be subscribed at an integer multiple.
4. Interest calculation Whether it is an online cash subscription or an offline cash subscription, the interest generated before the fund is established will be included in the fund assets.
5. Subscription time: The offline cash subscription period covers the entire issuance period, while the online cash subscription period is generally only the last three days.
The above content about the difference between ETF online cash subscription and offline cash subscription, I hope it will be helpful to everyone.
Warm reminder, financial management is risky, so investment needs to be cautious.