OTC fund: OTC market is understood as the agency sales of banks and securities companies, and the direct sales mode of fund companies, which is also the familiar open-end fund sales channel.
Differences between OTC funds and OTC funds;
1, trading channels are different.
After opening an account, the on-site subscription funds are traded through the trading software of the securities company; The trading method of OTC subscription funds is as mentioned above.
2. The transaction objects are different.
LOF, ETF and closed-end can be purchased in the venue, and fixed investment and conversion cannot be carried out in the venue; All open-end funds can be purchased off-site, including LOF funds and some ETF funds, and most off-site funds can be fixed and converted.
3. The transaction rate is different.
The highest one-way transaction rate of buying or selling in the market shall not exceed 0.3%; The off-site subscription rate is generally 0.6% ~ 1.5%, and the redemption rate is generally 0.5%.
4. The arrival time is different.
The on-site funds can be sold within T+ 1 working day after purchase, and the funds will be received within T+ 1 working day; Off-exchange funds can be redeemed within T+2 working days after subscription and received within T+ 1 working days.
5. The transaction price is different.
On-site purchase is conducted in the form of stock trading. According to the relationship between supply and demand, the transaction is carried out at a timely price, and the price is different at different trading times on the trading day. Over-the-counter subscription is an unknown price, which is traded at a net price, and there is only one price every day.
6. Dividends are distributed in different ways.
The only way to buy dividends on the spot is cash dividends; Over-the-counter subscription dividends include cash dividends and dividend reinvestment.
Tips: The above explanations are for reference only.
Response time: 2021-01-13. Please refer to the latest business changes announced by Ping An Bank in official website.
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