There are the following differences between on-site funds and stocks:
1, cost variance
Investors need to pay commission, transfer fees and stamp duty when trading stocks, while trading funds on the exchange floor only needs to pay commission, without charging transfer fees and stamp duty.
2. Dividends are distributed in different ways.
On-site funds can only get cash dividends, and stocks can get cash dividends or dividends.
3. Different codes
On-site fund codes in Shanghai Stock Exchange begin with 50, 5 1 and 52, while on-site fund codes in Shenzhen Stock Exchange begin with 15, 16 and 18, with 000 representing Shenzhen A shares, 002 representing small and medium-sized board, 300 representing GEM, 600 representing Shanghai A shares and 688 representing science and technology innovation board stocks.
4. Differences in price fluctuations
The floor fund invests in many stocks, and the price changes with the changes of the invested stocks, that is, when the invested stocks go up as a whole, it goes up, and vice versa. The price of a single stock is only affected by its trend, and its fluctuation is relatively greater than that of the floor fund. At the same time, its risks and benefits are also greater than the floor fund.
5. The degree of master control is different.
Individual stocks are easily controlled by bookmakers, but it is more difficult for bookmakers to control stocks, especially some index funds, which are passive funds and mainly track related indexes.
6. Different risks
Compared with a single stock, the risk of investing in multiple stocks or tracking an index is lower.
In short, investors trading funds in the stock market is almost the same as trading stocks. When buying, they should control their positions reasonably and set up stop-loss positions.