As we all know, fund investment transactions can be conducted directly on Alipay, and Alipay funds have become the first choice for many novices to invest.

Why is it not recommended to buy funds on Alipay?

What are the disadvantages of buying funds with Alipay?

Let’s take a look below.

Why is it not recommended to buy funds on Alipay?

Disadvantage 1: Alipay is a third-party fund trading platform and can only purchase over-the-counter funds. According to the difference between fund exchanges, funds can be divided into on-exchange funds and over-the-counter funds. Funds traded on stock exchanges are called on-exchange funds.

Funds that are traded outside the stock exchange are called over-the-counter funds.

Alipay is a third-party trading platform. Alipay is equivalent to an intermediary for fund transactions, and there will be certain fees in the middle.

Compared with on-exchange funds, OTC funds have higher subscription and redemption rates than on-exchange funds.

The cost of purchasing funds over the counter is higher than on the exchange, so it is recommended to go directly to the exchange without paying the middleman's price difference.

Disadvantage 2: Alipay’s recommended funds are very easy to mislead novice investors. Alipay generally recommends some Alipay Golden Selection funds in conspicuous places, but in fact these funds are either not suitable for novices or their yields are not high.

For novice investors, they have no ability to choose funds at all. They usually choose to buy based on recommended funds. After buying, they usually become leeks. If they buy at a high point and cannot stand the decline, they start selling. In other words, it is easy to chase the rise.

A killing situation.

Disadvantage 3: The transaction price of Alipay funds is fixed on the day, and it takes a long time for the sales to be credited. The OTC funds purchased by Alipay are traded according to the net value of the closing price of the day. No matter what the trading time period, there is only one buying transaction price, while the on-site funds are based on the commission.

Price deal.

After the on-site fund is redeemed, the money can be credited to the account on the same day, and you can then purchase and invest in other funds. However, Alipay needs to sell the funds on the second trading day.

To sum up, fund investment seems simple, but in fact it still requires certain skills and professional knowledge. If you want to really make money from funds, you still need professional knowledge.

The above is all about "Why it is not recommended to buy funds on Alipay and what are the disadvantages of buying funds on Alipay". I hope it will be helpful to you.