However, if investors want to sell the fund shares purchased at designated outlets, they must go through certain transfer custody procedures; Similarly, if you want to redeem the fund shares you bought online on the exchange and redeem them at designated outlets, you must also go through certain transfer custody procedures.
LOF is an open-end fund, which can purchase or redeem fund shares in the OTC market at the same time, and organically link the OTC market and OTC market through the mechanism of transferring shares to custody.
LOF fund arbitrage operation:
When the transaction price of LOF fund in the secondary market exceeds the net value of the fund, it is hereinafter referred to as Class A arbitrage. LOF fund has two prices: the transaction price in the secondary market and the net value of the fund. LOF fund secondary market transaction price is the same as the stock secondary market transaction price, which is the price generated by investors buying and selling each other.
LOF fund net value is the actual value formed by fund management companies after purchasing financial instruments such as stocks and bonds with raised funds. The trading price fluctuates continuously during the trading time of one day, and the net value of the fund is calculated by the fund management company according to the closing prices of stocks and bonds on that day after the market closes every day.