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.
Differences between OTC funds and OTC funds;
The difference between trading places: to conduct on-site fund trading through the trading software of securities companies, you need to open an account at the stock exchange first; After the OTC funds are opened through banks, securities companies, third-party financial platforms or fund companies, they can conduct fund transactions. trading places is outside the stock exchange. Transaction rate difference: the transaction cost generated by the on-site fund will not exceed 0.3%, which shall be implemented according to the commission rate signed by the customer and the securities company; For OTC funds, the subscription rate is generally between 0- 1.5%, and the redemption rate is generally around 0.5% of the redemption amount. Different trading objects: funds traded on the floor are generally transactional open-end funds, listed open-end funds and closed-end funds. , and OTC funds include most open-end funds. Transaction price difference: the secondary market of on-site funds has different transaction prices at different trading times on the trading day, similar to stock trading, and trades at real-time prices according to the relationship between supply and demand. The price of OTC funds is fixed, and the redemption is based on the net value of the fund on that day.
1. How to buy the on-site fund?
On-site funds need to be purchased through securities accounts, so if you want to buy on-site funds, you need to open a stock account first. After opening a stock account and transferring the money into the account, log in to the stock trading software, click the "stock" column in the stock trading software, enter the code of the fund to be purchased, then select the purchase amount and follow the prompts to purchase. It should be noted that the column of "stocks" is chosen instead of the column of "funds" because the column of "funds" is mainly used for the subscription and redemption of OTC funds. In fact, the trading mode of on-site funds is similar to that of stocks, which can be purchased at any time and traded in real time. LOF funds and ETF funds can not only be traded on the market, but also be purchased and redeemed off-market.