2. OTC funds can be called purchase and redemption, which means that investors purchase and redeem fund shares according to the net fund value. Therefore, OTC fund trading is a transaction between investors and fund companies, and subscription and redemption will affect the total share of funds.
1. What is the difference between on-site subscription and off-site subscription? The difference between on-site subscription and off-site subscription
1, trading places is different.
On the floor is the exchange, also called the secondary market or the stock market. As the name implies, OTC refers to markets outside the exchange, such as fund companies, banks, securities companies and third-party fund sales companies. On-site trading must be operated through stock accounts, but off-site trading is not required, and you can purchase and redeem directly on the trading platform.
2. Different trading methods.
In fact, it can't be called subscription or redemption, but buying and selling, that is, buying and selling fund shares according to the real-time transaction price in the market. Trading is similar to stock trading. On-site fund trading is a transaction between investors, and fund trading will not affect the fund size and total share. OTC funds can be called purchase and redemption, which means that investors purchase and redeem fund shares according to the net value of funds. Therefore, OTC fund trading is a transaction between investors and fund companies, and subscription and redemption will affect the total share of funds.
3. Different counterparties
The number of fund products that can be traded in the market is relatively small, generally including LOF funds, ETF funds and closed-end funds, while OTC funds include all open-end funds, LOF funds and some ETF funds. OTC funds are more suitable for fixed investment and conversion of operating funds. Although the on-site fund also supports fixed investment, it cannot set automatic fixed investment, which is more troublesome to operate.
Two.
1. the transaction price of listed open-end funds in the secondary market changes with the market immediately, and the subscription, Redemption is based on the net value of fund shares closed on the same day, and the two transactions are different.
2. There is a difference between the transaction cost (turnover less than 3‰) and subscription cost (subscription amount is about 1.5%) and redemption cost (redemption amount is about 0.5%) in the secondary market. , reflected in the transaction price of the two ways will be different.
3. The buying and selling prices in the secondary market will tend to be consistent with the net value of fund shares. Investors should pay special attention to the differences and choices of buying and selling, subscription and redemption when conducting entrustment operations through the counter, telephone or online.