The exchange is what everyone often calls the secondary market. Under normal circumstances, closed-end funds, ETF funds and LOF funds can be bought and sold in the exchange market. So, do you know that the risks of on-market funds are high? What are the advantages?

Are the risks of exchange-traded funds high?

The risk of exchange-traded funds is high or low, depending on the actual situation. The specific analysis is as follows:

1 On-exchange funds are funds listed on exchanges. Like stocks, they can be bought and sold using stock accounts. Moreover, the transaction price of funds on the exchange will be affected by the relationship between supply and demand, so there will be fluctuations or opportunities for arbitrage. Therefore, for some investors who pursue stable returns and do not accept any risks, exchange-traded funds are definitely more expensive than bank deposits.

2 On-site funds have high transaction efficiency, low transaction costs, fast funds arrival, and can be held for long-term or short-term operations. Therefore, by buying on-site funds, you can grasp the long-term market trend, and you can also appropriately Perform band operations. For investors who want to pursue long-term returns and can accept the risk of short-term fluctuations, on-site funds are relatively stable in the long term, and their risk is still lower than stocks.

What are the advantages?

1. Low transaction rates. The entry and exit fees are only 0.3%, which is much cheaper than banks and online direct sales.

2 Funds arrive quickly. It is a T+1 transaction, and the time cost and opportunity cost are relatively dominant.

3 The transaction method is flexible and convenient. Transactions can be carried out at the business department of a securities company, or at home or in the office using the Internet.

4 is conducive to band operation. You can seize opportunities in time or avoid risks quickly.