"Market" refers to the exchange. Funds traded on the exchange are OTC funds, while those not traded on the exchange are OTC funds. Or we can say that the funds traded in Shanghai Stock Exchange and Shenzhen Stock Exchange are all on-site funds.
1, the trading mechanism is different.
The trading mechanism of on-site funds is the same as that of stocks. It's a matchmaking deal, and your opponent is another investor. OTC funds buy and sell fund shares of fund companies, and the counterparty is the fund company.
2. Different trading channels
On-site funds are traded on the exchange and can only be bought and sold with securities accounts. OTC funds can be sold on a commission basis through third-party platforms such as fund companies and banks, and traded with securities accounts.
3. The transaction price is different.
On-site fund prices change in real time, and the prices bought at different times on the same trading day are different. Over-the-counter funds only publish one fund net value every trading day, and the share confirmed on the same trading day is the same price.
4. Different investment methods.
Off-exchange funds can choose one-time investment or set fixed investment, while on-exchange funds cannot set fixed investment.
5. The transaction cost is different.
The transaction cost of OTC funds is similar to that of stocks, and they charge commissions, while OTC funds charge subscription fees and redemption fees. The transaction cost of OTC funds is higher than that of OTC funds.
6. The number of funds is different
The number of on-site funds is relatively effective, there are not many products to choose from, and the number of off-site funds is huge, with a very large range of choices.
7. Different trading thresholds
Generally, the minimum on-site fund is 1 1,000 yuan, and there are many off-site funds purchased from 1 yuan.
8. Different liquidity of funds
Under normal circumstances, the funds in the field are more liquid, which can be redeemed on the same day and can continue to invest on the next trading day. After the OTC funds are redeemed, the funds will generally arrive in T+ 1 to T+4 working days. 9. Dividends are different. On-site funds only have cash dividends, while off-site funds have cash dividends and dividends that can be reinvested.