Due to different trading venues, funds are divided into two categories: on-site funds and off-site funds. So, which is better, on-site fund or off-site fund? Which is more cost-effective? The following Xi Cai Jun has prepared relevant contents for your reference.

It is more cost-effective and better to buy on-site funds for the following reasons:

1, the on-site fund fee is lower.

Investors only charge commissions to on-site funds, of which the highest commission rate is not more than three thousandths, which varies from securities company to securities company and is generally two thousandths. However, OTC funds need to pay certain subscription fees, redemption fees, sales service fees, management fees and custody fees, which are higher than those of OTC funds.

2. Funds arrive faster.

When OTC funds are sold, their funds are deposited in the stock account on the same day, which can be used to purchase other funds or wealth management products, and taken out on the next trading day. When the OTC fund is sold, its funds will not arrive on the same day and need to be delayed. Different types of funds arrive at different times, and relatively speaking, off-site funds arrive faster.

3. The transaction is more flexible

Some OTC funds implement T+0 trading mode, that is, investors can buy on the same day and sell on the same day. Compared with OTC funds, their transactions are more flexible.

4. The price is more transparent

The price of OTC funds will be updated at any time, but the net value of OTC funds will not be updated at any time. At the same time, some platforms have removed the net value estimation function, so investors can only know the fund's ups and downs on that day when they announce the net value at night.

However, investors should not be day trading when buying on-site funds for the following reasons:

1, increasing the transaction costs of investors.

Investors need to charge a certain commission fee for financing in the trading hall. If investors buy and sell frequently, this part of the cost will increase, thus increasing the transaction cost of investors.

2. Miss the market of the fund.

Investors frequently operate, and it is easy to miss the fund's market. It is more common that after investors sell, the fund rises. At the same time, many bull funds in the market are slowly running out, and the rapid increase is relatively small, so frequent stock trading will also make investors miss the bull funds.