Disadvantages and advantages are relative, but they are also considerable. For example, OTC funds have their own advantages and disadvantages that cannot be ignored. If you plan to buy OTC funds, you must understand them. Let me tell you what the disadvantages of OTC funds are.

What are the disadvantages of OTC funds?

1. Transaction costs are high. During the transaction process of OTC funds, there will be middlemen because there are many "middlemen" handling them. The price difference and additional additional costs are also relatively large.

2. The withdrawal of funds is slow. Over-the-counter funds only look at the closing price. The completion of redemption settlement needs to wait until the next day, and it takes another day for the fund company to convert fund shares into cash, so from the time of application for redemption It will take three days for the cash to be credited back to your account.

3. The operability is not strong. OTC funds only have one net value per day. The buying and selling is based on the closing price every day and cannot be controlled.

4. On-exchange funds are transactions between individual investors, and trading activity is also a major potential risk.

Under different circumstances, the views on the advantages and disadvantages of on-exchange trading and over-the-counter trading will be different. Investors cannot buy all on-exchange funds because of their advantages and disadvantages. The key to buying funds is to look at their advantages and disadvantages. Is there much room for net worth growth? It doesn’t mean whether you have to buy off-site or on-site.

After reading the above introduction, I believe everyone has a more comprehensive understanding of the shortcomings of over-the-counter funds. There is no best over-the-counter fund, only the right one. Choosing the one that suits you is the best. OK