A securities account must be opened to purchase on-site funds. As long as it is the subject matter circulating in Shanghai and Shenzhen stock exchanges, whether it is stocks or funds, it needs to be purchased through securities accounts.
Buying an OTC fund only needs to open an internal fund account, and buying an OTC fund only needs to open a fund account on the sales platform. Opening a stock account is mainly for stock trading. On-site funds refer to funds traded in stock exchanges, and funds and stocks are traded in real time according to the market.
On the floor is the stock market, also known as the secondary market. Off-exchange market is understood as the stock exchange market, that is, the agency sales of banks and securities companies, and the direct sales of fund companies, that is, the familiar open-end fund sales channels. Closed-end funds and ETF funds can only be purchased in the market (for large investors, ETFs can be purchased in the "primary" market), that is, they can only be purchased in the stock market. Other open-end funds can be purchased off-site, which is a well-known way, in which LOF funds can be purchased on-site.
To open a Shanghai and Shenzhen shareholder account in a securities company, you can conduct on-site trading of LOF and ETF funds in the business department or website of the securities company (if you have bought stocks or closed-end funds before, you can use the original account without reopening the existing account).
Just like off-site subscription, on-site subscription (subscription) can also get dividends, but there is one difference. The fund dividends purchased on the market can only be cash dividends, and cannot be reinvested. Those purchased off-site can be reinvested. Funds that can be redeemed and purchased on the spot can also be redeemed on the spot. The redemption price is the net value announced by the company on the day after the market closes. Buying (stock method) is different from buying (fund method), and selling is different from redemption.
Because there are trading, subscription and redemption mechanisms in the secondary market at the same time, holding these two types of funds can not only wait for the net value to rise to realize income, but also carry out arbitrage trading when there is a difference between the transaction price in the secondary market and the net value of fund shares. This also makes the price of such funds traded in the secondary market will not be discounted like closed-end funds.