LOF products can be traded on the floor (bought and redeemed on the floor). In terms of rates, on-site transaction rates will be cheaper. The rate of a transaction is actually the investor's trading commission, which depends on the trading commission rate agreed by the investor and the securities company.

In addition, on-site trading is more efficient, and you can basically buy or sell on the same day. For off-exchange redemption, the fund company may have to liquidate, and finally it may be delayed for one or two days. This is the efficiency of funds.

However, OTC redemption also has certain advantages. For example, OTC redemption is a net value every day. Without such price fluctuation in the market, it is more suitable for investors who don't pay much attention to the market.

But also can make investment in other places. In addition, no matter how small the product is, it can also be redeemed in different places. However, on-site trading requires high liquidity of investment targets, and some funds with relatively small turnover may encounter some difficulties when selling on the market.

Extended data

LOF has three investment methods;

The first way is to buy and sell fund shares through securities companies in the form of floor trading, just like buying and selling stocks.

Second, purchase and redemption through channels with fund agency qualifications. For example, securities companies can actually buy and sell OTC funds and trade according to the net value of fund shares after the close of the day. It's not much different from counter buying, mainly because arbitrage is faster.

The third way is to buy and sell funds through third-party fund sales platforms or bank channels, and trade according to the net value of fund shares after the market closes on the same day.

The first way is mainly to pay trading commission, which depends on how investors and securities companies determine the rate and commission rate. The second and third types need to pay subscription fees and redemption fees, and the subscription fees of some institutions will actually be discounted.

The management fee of the fund is to be paid, depending on how long the investor holds it. Generally speaking, the management fee is charged at the annual price, but it will be mentioned every day by day. If investors buy and sell quickly, they will not actually generate a lot of management fees.

Yang guang. Com- graded fund transformation LOF products suitable for investment?