Investors can purchase and redeem fund shares in the primary market through open-end fund accounts, or buy and sell funds in the secondary market, and organically link the OTC market and the OTC market through the transfer custody mechanism.

Lof funds can be traded on or off the market, and investors can use this feature to arbitrage.

Speed up trading, that is, lof has increased the on-site trading of open-end funds, and the fund shares bought can be sold at t+ 1, and the fund funds sold can be used on the same day if referring to the settlement method of securities trading, and t+ 1 can be withdrawn in cash. Compared with over-the-counter transactions, the purchase is 1 day earlier than the purchase, and the sale is 6 days earlier than the redemption.

Reduce transaction costs, that is, investors can reduce transaction costs by trading funds in the secondary market. Generally speaking, the bilateral cost of buying and selling fund shares through exchanges is up to 0.5%.