This paper will discuss the definition, characteristics, investment methods, advantages and disadvantages of on-site funds.
On-site funds are exchange traded funds (ETFs), also known as listed traded funds. It is an open-end fund, which can be listed and traded on the stock exchange, and can be bought and sold on the exchange like a stock. The trading hours of on-site funds are the same as those of stocks, and the prices will change constantly, so investors can buy and sell at any time. The investment portfolio of the floor fund can track the standard index or stock of a specific industry, so it is also called index fund or industry fund.
On-site funds have the following characteristics: first, they have good liquidity, can be bought and sold at any time, and have rich trading channels; Second, the transaction cost is low, and the transaction cost is the same as that of stocks, and there is no need to pay redemption fees; Third, the investment threshold is low, and small investment is enough, which is very friendly to retail investors. These characteristics make on-site funds favored by more and more investors.
There are two main ways to invest in on-site funds: one is to trade through securities accounts opened by brokers, and investors can participate in the trading at any time; Second, direct purchase or redemption through the fund * *, generally through the fund * * or offline institutions for purchase or redemption.
The advantages and disadvantages of on-site fund investment also need investors' attention. The advantage is that the on-site fund has the characteristics of decentralization, good liquidity, convenient transaction and low cost, and can realize a simple and effective investment portfolio; The disadvantage is that the net value of funds in the market is affected by market fluctuations, and the price may fluctuate greatly in the short term, which requires certain risk tolerance.
As a mature financial product, the floor fund has many advantages, and with the continuous development of the financial market, its investment methods and investment targets are also constantly optimized and expanded. Investors should choose their own on-site funds to invest according to their risk tolerance and investment objectives.