Advantages of LOF fund: investors can not only apply for redemption on the floor, but also trade on the floor. Compared with ordinary open-end funds, LOF funds can be traded like stocks, which can provide investors with various channels to enter and leave the funds. LOF funds can be active or passive, providing investors with more choices. Disadvantages of LOF funds: Compared with ordinary funds, there are fewer types of funds, which cannot fully meet the investment needs of investors who make portfolios. Fixed investment of funds is the main investment method in the investment market, but LOF funds must take the initiative to operate during the transaction, and the amount of a single transaction is limited. Too little will increase the transaction cost and the expected income is very small.
LOF Fund's main features: (1) Listed open-end funds are essentially open-end funds, and the total fund share is not fixed. Fund shares can be purchased and redeemed at the time and place agreed in the fund contract. (2) The sale of listed open-end funds combines the sales advantages of consignment agencies such as banks and the trading network of Shenzhen Stock Exchange. Banks and other agency outlets still use the current counter sales method, while the trading system of Shenzhen Stock Exchange adopts the popular online pricing and issuance method of new shares.
LOF refers to an open-end securities investment fund that is issued, listed and traded on the stock exchange. Listed open-end funds can be subscribed and traded centrally through stock exchanges, and can also be subscribed, purchased and redeemed through fund managers, banks and other consignment agencies. That is, on the basis of keeping the current open-end fund operation mode unchanged, increase the issuance and trading channels of the exchange.