1. Different trading venues: This is the easiest way to distinguish between OTC funds and OTC funds. On-exchange funds refer to funds traded on exchanges, while off-exchange funds have more channels for purchase and redemption, which can be in banks and brokers or in third-party financial platforms.
2. Transaction rate: OTC funds are purchased through a third-party financial platform, and the general subscription fee is 10% off, and the redemption fee is determined according to the holding time. Generally, the shorter the holding time, the higher the redemption rate. The trading fee of the on-site fund shall be executed according to the commission rate signed by the client and the brokerage firm. Whether to cancel the single minimum 5 yuan limit?
3. Transaction price: The transaction price of on-site funds is the published price that changes in real time, while the transaction price of off-site funds is fixed.
4. Different thresholds: Compared with the minimum investment of OTC funds 10 yuan, OTC funds have higher thresholds and need to start first. If you buy an ETF over the counter, you need 1 10,000.
5. Arrival time: On-site funds can be sold T+ 1 day after purchase, and the funds can be used after the transaction is successful. Generally, OTC funds can only be redeemed after T+2 days after purchase, and the time for funds to arrive is generally T+ 1 to 7 working days.
6. Dividend method: On-site funds only receive cash dividends, while off-site funds can receive cash dividends and reinvest the dividends.
I. Overview of on-site funds
On the floor is the stock market, also known as the secondary market. Off-exchange market is understood as the stock exchange market, that is, the agency sales of banks and securities companies, and the direct sales of fund companies, that is, the familiar open-end fund sales channels.
Two. Overview of on-site funds
Ordinary open-end funds belong to OTC funds, that is, only one net value is used as the purchase and redemption price every day.
Third, the advantages of on-site funds:
1. Low cost: The rate of on-site funds trading is low, so it still has certain advantages in cost, especially the cancellation of the single minimum 5 yuan limit.
2. Arbitrage advantage: The funds in the market will fluctuate due to the influence of supply and demand, which may lead to arbitrage opportunities at a premium or discount.
3. High efficiency: Compared with the subscription and redemption of on-site funds, on-site fund transactions are much faster, so the capital utilization rate is very high.
Fourth, the shortcomings of the fund:
1. Manual transaction is troublesome: fixed investment plan cannot be set.
2. There are few funds in the market: there are many funds in the market, so the range of choice is relatively small.
Verb (abbreviation for verb) Advantages of OTC funds:
1, without opening an account: investors can buy directly at the bank or Alipay or WeChat without opening an account.
2. Automatic fixed investment: We can set automatic fixed investment. We just need to ensure that the funds are sufficient, and we don't even need to pay attention to the rise and fall of funds. There is no psychological factor that affects our transactions.
3. Variety: Generally, every brokerage firm will release the tracking fund of the mainstream index, so it has a wide choice, and there are also enhanced active funds with human factors outside the market.
6. Shortcomings of OTC funds:
1, low efficiency: it takes a long time from the redemption of off-site funds to the arrival of funds, which is very low in terms of capital utilization.
2. Higher cost: The subscription fee for OTC funds is generally 1%~ 1.5%, and it is 0. 1% ~ 0. 1% if bought on a third-party financial platform, so the transaction cost is still relatively high. Although Class C funds have no subscription fee and no redemption fee for long-term holding, they have higher sales service fees.