According to different trading places, funds are divided into OTC funds and OTC funds. The stock funds and money funds we often see belong to OTC funds. "Market" refers to the exchange, and OTC funds refer to the funds traded through the exchange, that is, you need a stock account to buy and sell OTC funds. What are the common on-site funds?

ETF, LOF and closed-end funds are very common in the market.

Spot bitcoin exchange trading fund

Transactional open index fund is an open index fund listed on the exchange. ETF has the characteristics of both closed-end funds and open-end funds. There are two trading methods, which can be exchanged for fund shares through a basket of fund companies or bought and sold at the same price in the secondary market.

line of force

LOF, a listed open-end fund, also has both on-site and off-site trading methods. Unlike ETFs, LOF trades fund shares in cash. LOF traded on the counter is traded according to the net value of the fund, while LOF traded on the floor is traded at a real-time fluctuating price like a stock.

close-ended fund

Corresponding to open-end funds, closed-end funds enter a closed period after their establishment, during which they can only be bought and sold through the secondary market. Therefore, closed-end funds are more suitable for long-term investment and value investment.

We will find that when these on-site funds trade in the secondary market, they all trade with real-time fluctuating prices like stocks. The price level is determined by the relationship between supply and demand in the secondary market. If the closing price of the day is different from the net value of the fund updated off-site on that day, there will be a discount and a premium. The closing price is greater than the updated net value, which is called premium, and the closing price is lower than the updated net value, which is called discount.