Is it better to buy OTC funds or OTC funds? This is a common problem for beginners. In this article, we will discuss this problem and give you some useful suggestions.
1. Fund type
Look at the types of funds. On-site funds are funds listed on the exchange, while off-site funds are funds purchased directly from fund companies. Off-exchange funds usually need to be purchased through banks or securities companies, while on-exchange funds can be traded on exchanges like stocks.
For beginners, it is recommended to buy on-site funds. Because the funds on the floor can be traded in real time like stocks, which is convenient and fast. Moreover, the funds in the market are usually more liquid and easier to sell.
2. expenses
Look at the cost again. The expenses of the Fund include management fees, custody fees and sales service fees. Generally speaking, the cost of on-site funds is lower than that of off-site funds. This is because the management fees and sales service fees of on-site funds are lower than those of off-site funds.
For beginners, it is recommended to buy low-cost on-site funds. Because the lower the cost, the higher the return on your investment.
3. Investment style
Let's look at the investment style. The investment styles of funds include value investment, growth investment and index investment. Different investment styles are suitable for different market environments.
For beginners, it is recommended to buy index funds. Because the investment strategy of index funds is to track the market index, there is no need for fund managers to actively manage it. This means that the cost of index funds is low and usually stable.
4. Risk control
Let's look at risk control. The risk control of the fund includes diversification, risk control and regular review. Different fund companies have different performances in risk control.
For beginners, it is recommended to choose a fund company with good risk control performance. Because these fund companies usually have better risk control mechanisms, which can help you reduce investment risks.
For beginners, buying on-site funds is a good choice. Because of its convenience and low cost, on-site funds are suitable for investing in index funds and have a good risk control mechanism. When choosing a fund, we also need to pay attention to the type, cost, investment style and risk control of the fund. I hope this article is helpful to you!