The "market" here refers to the securities trading market. On-market trading is similar to the buying and selling of stocks on the exchange during trading hours, while the funds sold by the fund sales platform are over-the-counter transactions. We refer to this kind of transaction as It's called Subscription and Redemption.

Not all funds can be purchased "on the market". Most public funds on the market are of the over-the-counter type. Funds that can be traded on the market are some such as LOF funds, ETF funds, and closed funds. This period supports specific types of funds such as listed trading (you can check the fund announcement for specific information).

The editor mainly summarizes 3 points for you on the difference between buying funds on the exchange and over the counter:

Different trading mechanisms:

OTC transactions are essentially The purchase is completed through the fund company, and the on-site transaction is to purchase fund shares directly with other investors; when buying and selling funds on the fund sales platform, the price is calculated based on the net value on the trading day. For example, if the net value on that day is 1 yuan, then buy 100 yuan. It’s equivalent to buying 100 copies. For on-market transactions, in addition to being based on the value (net value) of the fund itself, it also depends on the needs of buyers and sellers.

The investment thresholds are different:

The capital threshold for OTC transactions is generally 10 to 1,000 yuan, and there are even those with a minimum investment of 1 yuan; for on-site transactions, the minimum investment for each transaction is 100 shares, because the "prices" of different funds are different. If each share of this fund is worth 10 yuan, then at least 1,000 yuan is needed.

Transaction fees are different:

For over-the-counter transactions, each type of fund has different handling fees. Generally, mixed funds and stock funds are higher, and the subscription/subscription fee is generally 1.2%. -1.5% or so, but there will also be some discounts on the platform. Fees for on-site transactions are handled in accordance with the relevant regulations of the stock exchange. Please consult each platform for details.

In addition, if it is a fund that can be traded both on and off the market, premiums or discounts may occur. Here is a reminder that the "price" of the fund on the market may be affected by the supply and demand of buying and selling, and is not the true value of the fund. Net asset value, the net value of a fund reflects the true performance of the fund.