OTC funds are funds that can be sold by banks, securities companies, third-party fund platforms and fund companies except the stock market. On-site funds and off-site funds have their own characteristics.
On-site funds need to be traded through securities accounts, which is also the limitation of on-site funds trading channels. On-site fund trading is very similar to stock trading. If you are an investor with experience in stock trading, it is easy to invest in on-site funds.
On-site funds have two obvious advantages. First, they are more liquid. When sold on the same day, the funds will be returned to the account in time, and the next trading day is desirable. Second, the fees are lower, and only trading commissions are charged for on-site fund transactions. At present, the handling fee of stock accounts tends to be low, and the commission of most stock accounts is around 23 thousand.
On-site funds also have some shortcomings: they can't be fixed and the number is small.
OTC funds can be traded through banks, brokers, third-party fund platforms, fund companies and various consignment platforms, with a wide range of trading channels.
Over-the-counter funds can set up automatic fixed investment, which is simply good news for those who have no time to do financial management. The variety and quantity of OTC funds are very rich, which can basically meet the needs of various investors. But the liquidity of OTC funds is even worse. If you purchase a fund today, you can only find the purchase results on the second trading day, and you can only sell the fund on at least the third trading day.