Lof funds are still relatively unfamiliar to a few people, and few people buy them. Recently, with the rise of most lof funds, lof funds have attracted more and more attention. What are the advantages of LOF fund? Today, Bian Xiao will give you a detailed list of the advantages of LOF funds and let you know how to use LOF funds to obtain high expected annualized expected returns. (The content is for reference only and does not constitute any investment advice)

1. What is lof Fund?

Lof (Listened Open-Ended Fund), also known as "Listened Open-Ended Fund". It is an open-end fund, which can purchase and redeem fund shares in the OTC market, and can also trade and purchase or redeem fund shares in the exchange (OTC market).

Second, what are the advantages of lof Fund?

This fund has three advantages:

1, the handling fee is relatively low: LOF funds are charged according to the relevant regulations of closed-end funds, and the transaction handling fee rate is relatively low.

2. Fast receipt of funds: over-the-counter transactions are adopted, and the fund shares subscribed on T day can only be redeemed on T+2 day, and can only be received within 3 to 7 working days from the redemption date. On-floor trading can realize T+ 1 fund delivery and fund delivery.

3. There are arbitrage opportunities: when the market price _ net value of fund shares (subscription date)+subscription fee+selling commission, investors can arbitrage by selecting the fund shares after "on-site subscription" (T+2 working days) and then "on-site selling". When the market price _ net value of fund shares (redemption date)-redemption fee-buyout commission, investors can arbitrage by "buying in the market" and then "redeeming in the market" (T+ 1 working day). Investors should be reminded that it takes two days to transfer custody between the two markets, so there are certain uncertainties and risks.