On-site funds-funds listed on the exchange, like stocks, can be traded with stock accounts. For example, ETF and LOF are the most common floor funds.
Purchase channel
On-site through stock accounts, off-site through open-end fund accounts.
Transaction rate
Generally speaking, OTC funds apply different rates to different subscription amounts, and different channels will have different rate discounts. The redemption fee within one year is usually 0.5%, and the longer the holding time, the lower the fee; On-site fund subscription generally implements the standard rate, with no discount. The redemption fee is calculated at a fixed rate, generally 0.5%; For floor trading, the transaction rate refers to the commission.
Purchase threshold
General OTC funds 1 10,000 yuan. At present, in order to meet the market demand, many fund companies mostly reduce the starting point of fund subscription to 10 yuan, and the OTC share of ETF funds will be 654,380+0 million. On-site fund 1 start.
Investment model
On-site funds cannot be fixed or converted. OTC funds can make fixed investment and fund conversion.
arrival time
After the on-site fund is bought, it can be sold on T+ 1 day, and the funds can be used immediately after being sold. OTC funds (except QDII, etc.). ) It can be redeemed in T+2 days after subscription, and the funds usually arrive in T+ 1 to 7 working days, and QDII funds take longer.
Dividend method
The only way to buy dividends on the spot is cash dividends; Over-the-counter subscription dividends include cash dividends and dividend reinvestment.
Let's talk about the advantages of on-site funds first.
1, the cost, the on-site fund transaction rate is low, which has a certain cost advantage compared with the off-site.
2. Arbitrage advantage. Due to the influence of supply and demand, the transaction price of the funds in the market will fluctuate, or there will be arbitrage opportunities at a discount premium.
3. The transaction efficiency is high, and the liquidity of ETF and LOF is similar to that of stocks, with fast arrival and relatively high efficiency in the use of funds.
4, the operation method, can be held for a long time, can also be short-term operation, so if you buy, you can not only grasp the long-term trend of the market, but also operate the band appropriately.
Let's talk about the advantages of OTC funds first.
1. There are many varieties. At present, there are not many on-site funds, and the off-site funds are different. There are many types such as stock base, debt base, cargo base and mixed base, and there are many options.
2. For funds with both OTC and OTC shares, there will be more opportunities for OTC trading if the liquidity in the market is poor. 3. OTC funds can set fixed investment and fund conversion, which is more worry-free. Attention should be paid to exchange funds.
These two funds have their own advantages. As for who is good or bad, you can choose on-site or off-site according to your own investment methods.
Over-the-counter funds-as the name implies, are funds that cannot be traded on exchanges, that is, funds that we can usually buy from fund companies, third-party websites or securities companies with fund accounts.
One is inside and the other is outside. What's the difference between them? Careful comparison, the difference is really a bit big.
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.
Investors can not only buy and sell ETF shares in the secondary market, but also buy and redeem ETF shares from fund management companies, but they must exchange portfolio securities (or a small amount of cash) for fund shares or exchange portfolio securities (or a small amount of cash) for subscription and redemption.
The difference between the two:
1, different transaction objects. There are closed-end basis and listed open-end basis (lop and ETF) for floor trading; OTC funds are all open-end funds, including index funds corresponding to lop and etf.
2. Different transaction methods and price formation. On-site trading is conducted in the form of stock trading. According to the relationship between supply and demand, the transaction is carried out at a timely price, and the price is different at different trading times on the trading day. The OTC price is unknown, and the transaction is based on the net value, and there is only one price per day.
3. The discount premium is different. There is a discount rate in the market, that is, the transaction price is lower than the net value, and there is an arbitrage opportunity. For the listed base, the discount rate is much smaller than the base cover. There is no discount premium problem for OTC funds, and the price is equal to the net value.
4. The trading channels are different. On the floor, you open an account in the stock exchange and trade through the trading software of the securities company. Can't vote, also can't switch. Fixed investment and conversion can be made through over-the-counter trading channels such as bank counters, online banking, securities company counters and fund company websites.
5. The transaction cost is different. General on-site transaction cost is 0.3%; Off-site general subscription fee 1-2.5%, redemption fee 1-2%, online direct selling offers discounts, with minimum subscription fee of 0.6% and redemption fee of 0.5%.
6. On-site trading is timely and off-site trading is daily.
On-site trading, also known as exchange trading, refers to the trading mode in which all supply and demand sides concentrate on the exchange for bidding trading.
OTC is also called OTC or OTC market. Securities are not traded by competitive bidding in the centralized market, but by bargaining at the business counter of securities companies, which is called over-the-counter trading.
Funds can be purchased on-site or off-site. The differences between them are as follows:
Trading channels are different. Buying funds on the market means opening an account in a securities company and trading through the securities company.
A transaction; Over-the-counter purchase funds are traded through bank counters, online banking, securities company counters, fund company websites and other channels.
Trading objects are different. Funds that can be purchased in the market include LOF funds, ETF funds and closed-end funds. Funds in the market cannot be fixed or converted. All open-end funds, including LOF funds and some ETF funds, can be purchased off-site, and most of the off-site funds can be fixed and converted.
The transaction rate is different. The highest one-way transaction rate of buying or selling in the market shall not exceed 0.3%; The off-site subscription rate is generally 0.6% ~ 1.5%, and the redemption rate is generally 0.5%.
The arrival time is different. The on-site funds can be sold within T+ 1 working day after purchase, and the funds will be received within T+ 1 working day; Off-exchange funds can be redeemed within T+2 working days after subscription and received within T+ 1 working days.
The transaction price is different. On-site purchase is conducted in the form of stock trading. According to the relationship between supply and demand, the transaction is carried out at a timely price, and the price is different at different trading times on the trading day. Over-the-counter subscription is an unknown price, which is traded at a net price, and there is only one price every day.
Dividends are distributed in different ways. The only way to pay dividends for the on-site subscription fund is cash dividends; OTC subscription funds can be divided into cash dividends and dividend reinvestment.