OTC funds refer to funds that are not listed on the stock exchange but are traded in banks, securities companies, third-party financial platforms or fund companies' direct selling platforms. At present, most funds are OTC funds.
On-site funds refer to securities investment funds that can be listed and traded on the stock exchange like stocks. Common floor funds include closed-end funds, listed open-end funds (LOF), transactional open-end funds (ETFs) and graded funds. There are two investment methods for on-site funds: primary market subscription and redemption and secondary market transaction. The secondary market trading mode of on-site funds is the same as that of stocks, and the share of 100 funds is 1 lot, and the market quotation is used for bidding transactions.
First, OTC funds and OTC funds have different trading venues. OTC funds are traded outside the stock exchange, and fund transactions such as subscription, subscription, redemption, fixed investment and conversion can be carried out by opening accounts through banks, securities companies, third-party financial platforms or fund companies. On-site fund trading needs to open an account in the stock exchange and trade through the trading software of the securities company.
Second, the transaction rates are different. According to the different investment objects, the subscription rate of OTC funds is generally between 0- 1.5%, but at present, the subscription rate of various platform funds is generally discounted to varying degrees, depending on the specific conditions of each platform. Similarly, according to different investors, different types of funds also have different redemption rates, and the general redemption rate is about 0.5% of the redemption amount. In order to encourage investors to hold funds for a long time, the redemption fee usually decreases with the increase of holding time, and the redemption fee is generally waived for those who hold funds for more than 2 years. It is worth noting that since March 3, 2065438, the new short-term redemption fee for funds has been officially implemented: except for money funds and ETFs, investors who hold open-end funds for less than 7 days are charged a redemption fee of not less than 1.5%. The trading of on-site funds is similar to stock trading, and the transaction fee is executed according to the commission rate signed by the customer and the securities company, and there are different standards for different customers.
Third, the trading objects are different. The funds traded on the floor are generally transactional open-end funds (ETFs), listed open-end funds (LOF) and closed-end funds. OTC funds include most open-end funds (including open-end fund shares corresponding to LOF and ETF).
Fourth, the transaction price is different. The secondary market trading of on-site funds is similar to stock trading. According to the relationship between supply and demand, real-time prices are used for matching transactions, and the prices are different at different trading times on trading days. The price of OTC funds is fixed, and the redemption is based on the net value of the fund on that day.
Fifth, the arrival time is different. Generally speaking, the on-site funds can be sold within T+ 1 working day after being bought, and the funds can be used on the same day and withdrawn the next day (working day). OTC funds are generally redeemed on the second working day after subscription, and the time for funds to arrive is generally T+ 1 to T+7 working days (including QDII funds).
Sixth, the dividend distribution methods are different. Dividends of OTC funds can be divided into cash dividends and dividend reinvestment. On-site funds only receive cash dividends and cannot be reinvested.