I can't tell the types of various financial products, or I don't know enough about financial management methods, I don't know how to choose, or I'm not confident enough. For example, what is the difference between OTC funds and OTC funds? The following small series brings on-site funds and off-site funds, I hope you like it.

1. What's the difference between OTC funds and OTC funds?

The differences between on-site funds and off-site funds are mainly reflected in trading places, trading methods, trading varieties, trading costs, dividend distribution methods, investment thresholds, flexibility, fund price changes and so on.

trading place

The main difference between on-site and off-site is whether it is listed and traded on the stock exchange. OTC funds listed and traded on the stock exchange; If it is not listed on the stock exchange, it is called an OTC fund. On-exchange funds can be traded on the exchange, while off-exchange funds can only be traded on platforms other than the exchange.

Trading means

On-exchange funds can only trade after investors open securities trading accounts, and off-exchange funds do not need to open securities trading accounts. There are many purchase channels for OTC funds, such as Alipay, fund companies and banks. On-site funds can be purchased and redeemed or traded in the secondary market. However, OTC funds can only be purchased and redeemed, and cannot be traded in the secondary market.

Trading variety

The trading objects of OTC and OTC funds are different. Generally speaking, OTC funds are closed-end or listed open-end funds, and OTC funds are open-end funds. At the same time, the types of OTC funds are relatively more selective, while there are relatively few types of OTC funds, most of which are index funds.

transaction cost

On-site funds need less handling fees than off-site funds, and off-site funds need many kinds of handling fees, such as management fees, sales service fees and custody fees.

Dividend method

Generally speaking, on-site funds pay dividends in cash, and off-site funds can choose to reinvest with dividends.

Investment threshold

From the investment threshold, the investment threshold of OTC funds is higher than that of OTC funds, and the investment threshold of OTC funds is relatively low. For example, you only need 10 yuan to buy a fund on Alipay, or even one yuan.

On-site funds need to buy at least one hand, that is, 100 shares, and the amount of funds needed to buy 100 shares is relatively large, at least several hundred. In addition, on-site funds cannot vote, and off-site funds can choose to vote.

flexibility

On-site funds can be purchased and redeemed or traded in the secondary market. At the same time, the on-site fund can realize real-time trading, and the fund can be sold to the account quickly, with high overall operation efficiency. Off-exchange funds cannot be traded in the secondary market, and the redemption time of funds is slow.

Fund price change

The trading price of on-site funds changes in real time, showing the latest price, while the price of off-site funds is updated only once a trading day, so it is impossible to show the price changes of funds in real time.

2. Is it better to buy OTC funds or OTC funds?

Both OTC funds and OTC funds have their own advantages and disadvantages. The choice of OTC fund or OTC fund needs to be judged according to the investors' own needs. There is no absolute good or bad, but relatively speaking, who has the advantage in some aspects.

The trading channels of on-site funds are relatively single, but the trading methods are diversified. However, OTC funds have diversified trading channels and relatively single trading methods. Over-the-counter funds are more diverse and more selective, while on-market funds

Bull market and bear market are only in an instant, and many people hope that the bull market will appear. For the judgment of bear market, we can adopt the method of contingency synthesis, that is, to establish a comprehensive analysis system whose standards are revised with historical changes and can adapt to the changed status quo. This analysis method is also suitable for balancing the market.

Bear market duration

It is understood that there are bull stocks in the bear market, such as Yi 'an Technology and Haihong Holdings. Give up if you lose money, and the result is a ups and downs. Whether it is to distinguish bear stocks in a bull market or to know bull stocks in a bear market, it is important to see whether the medium and long-term moving averages of individual stocks present and maintain an upward trend.

As for how long does a bear market last? A bear market generally does not last more than five years. To put it simply, within five years, the A-share market is bound to have a relatively good rise. Referring to the historical K-line chart of A shares, we can know that any time can be used as the initial unit of calculation. After five years of development, we can see that the stock market has risen every year for these five years.

There are relatively few types of funds. On-site funds charge lower fees, while off-site funds charge higher fees. The investment threshold of OTC funds is relatively high, but it is more flexible. The investment threshold of OTC funds is relatively low, but the flexibility is relatively poor.