What are the advantages and disadvantages of LOF fund? LOF fund is a fund that does not track the underlying index, but tracks the net value of fund units that match the fund. The advantages of this kind of fund are low service fee, convenient transaction, transparent information and cross-selling, but the disadvantages are also very obvious, such as few types, high entry threshold, and long-term investment is easily affected by a large number of purchase and redemption of project investment. However, it must be noted that the unit net value of LOF fund is mainly determined by the market trend and the actual operation countermeasures of fund managers.

The advantages of LOF funds are generally lower than those of other funds, so we can effectively reduce our own transaction costs in the process of operation. Because LOF fund itself uses trading center for trading, its advantage is that the trading speed is faster, the information is completely transparent, and it can cross the trading market.

Although the advantages of LOF fund are very obvious, it has many defects, because it can cross the trading market. Therefore, if investors want to sell LOF in the infield, they must apply for certain re-hosting procedures, on the contrary. This kind of operation can be described as very troublesome. LOF funds release the net value of the last fund unit every month and asset allocation every quarter or half a year.

This is a little slower than the issuance speed of general funds. Generally speaking, this is the advantages and disadvantages of LOF. Naturally, LOF has a small number of funds and a high entry threshold, which can not be ignored.

What does the stock LOF fund mean? The stocks of LOF fund mainly refer to the sales of open-end stock funds. Simply put, after the fund is sold, investors can subscribe and redeem the market share of the fund at the designated business outlets, and they can also trade the fund on the stock exchange. LOF funds can also subscribe for or redeem the fund market share in the OTC market, and at the same time, they can organically connect the OTC market with the OTC market in the form of market share transfer custody system. LOF Fund is an open-end fund.

What's the difference between LOF fund and stock fund? LOF, a single stock, mainly refers to the sale of open-end stock funds. After the sales of such funds are completed, LOF funds can conduct both on-site transactions and off-site transactions, which is an open-end fund. Equity funds are equity funds, which are mainly used for investment in stock market projects, and the stock market investment ratio of equity funds accounts for more than 80%. The difference between LOF fund and stock fund is mainly in trading rules, capital exchange, meaning essence, investment advice, net fund price, project investment crowd and so on.