Securities companies can buy and sell open-end funds, index funds, closed-end funds, LOF funds, stocks, warrants and bonds. There are more than 590 kinds of open-end funds.
One. Bank subscription: it is the worst way to buy and sell funds: front-end fee 1.5%, redemption fee 0.5%, and back-end fee about 2%. However, if it is held for less than half a year, the redemption fee is charged year by year. Generally, there is no redemption fee for holding for more than three years. Each bank can probably buy 100 kinds of funds, and the money will arrive in 4-7 days, which takes a long time. Maybe the market has changed and you want to reapply, but the money hasn't arrived yet. This is the worst way to buy and sell funds.
Two. Go directly to the fund company to purchase from the Internet: 1.5% of the subscription fee can be discounted by 60%, and the redemption fee is 0.5%. Each fund company can buy its own fund and register several fund companies online. When opening an online bank, it takes 4-7 days for the money to arrive at the account when it is redeemed, which takes a long time. Maybe the market has changed and you want to reapply, but the money hasn't arrived yet. It is troublesome to open online banking and register a number of fund companies online, which is a poor way to buy and sell funds.
Three. Open a securities account and apply online at home without going to the bank. Buying a fund in a securities company: the subscription fee is 0.3% and the redemption fee is 0.3%. Open-end funds, such as South China's active allocation and South China's high-growth small-cap funds, can also buy index funds, that is, eight ETF funds, such as E Fund 100 ETF Huaxia SSE 50 and AIA Dividend ETF. The advantage is that the cost is low, and the handling fee for buying and selling funds in securities companies is 0.3%, and stamp duty is not charged.
Most ETFs are equity funds, but ETFs based on fixed-income securities, commodities and currencies are also developing. For small and medium investors, ETF is attractive because of its low transaction and management costs, stable shareholding portfolio, scattered risks and high liquidity. Some people think that the steady development of ETF will lead to the decline of traditional actively managed equity funds.
Since ETF funds must be purchased through securities companies, some fund companies have developed ETF linked funds in order to broaden the sales channels of ETFs. ETF linked fund is essentially a kind of open-end fund, and its subscription, subscription and redemption methods and channels are exactly the same as those of ordinary open-end funds. Their characteristics are that the investment targets of ordinary open-end funds and ETFs are stocks, fixed income and other assets. The vast majority of investment targets of ETF-linked funds are their target ETF funds (generally investing in target ETF funds with no less than 90% positions), also known as "shadow funds" and "replication funds".
LOF is an innovation of open-end fund trading mode, and its more realistic significance lies in: On the one hand, LOF provides technical means for "closed to open". For closed-end funds, LOF is a solution that inherits the characteristics of closed-end funds and increases the exit mode of investors. For closed-end funds, LOF is not only a reasonable change of fund trading mode, but also a reasonable inheritance of open-end funds to closed-end funds. On the other hand, LOF's on-site trading reduces the redemption pressure. In addition, LOF has increased the sales channels of fund companies and eased the sales bottleneck of banks.
LOF is similar to ETF, which has both over-the-counter trading and on-site trading, and at the same time provides investors with the possibility of arbitrage. In addition, LOF is different from the current open-end fund, which increases the trading flexibility brought by on-site trading.
The differences between the two are as follows:
First of all, ETF is essentially an index open-end fund, which is passively managed, while LOF is an ordinary open-end fund, which increases the trading mode of the exchange. It may be an index fund or an actively managed fund.
Secondly, when purchasing and redeeming, ETF exchanges fund shares and "a basket" of stocks with investors, while LOF exchanges cash with investors;
Thirdly, in the primary market, that is, when purchasing and redeeming, ETF investors are generally large investors, such as institutional investors and large-scale individual investors, while LOF is not restricted;
Finally, in the secondary market, ETF provides a net quotation of funds every 15 seconds, while LOF provides a net quotation of funds every day.
Securities companies can buy and sell open-end funds, index funds, closed-end funds, LOF funds, stocks, warrants and bonds. There are more than 300 kinds of open-end funds. Where can we choose to buy from to minimize the handling fee?
One. Bank subscription: it is the worst way to buy and sell funds: subscription fee 1.5%, redemption fee 0.6%. Each bank can probably buy 100 kinds of funds, and the money will arrive in 4-6 days, which takes a long time. Maybe the market has changed and you want to reapply, but the money hasn't arrived yet. This is the worst way to buy and sell funds.
Two. Go directly to the fund company for subscription from the Internet: the subscription fee is 0.6% and the redemption fee is 0.6%. Each fund company can buy its own fund and register several fund companies online. When opening an online bank, it takes 4-6 days for the money to arrive at the account when it is redeemed, which takes a long time. Maybe the market has changed and you want to reapply, but the money hasn't arrived yet. It is troublesome to open online banking and register a number of fund companies online, which is a poor way to buy and sell funds.
Three. Open a securities account and apply online at home without going to the bank. Some securities companies say that we have preferential policies for buying funds: the subscription fee is 0.3% and the redemption fee is 0.3%. Open-end funds, such as South China's active allocation and South China's high-growth Guangfa small-cap funds, can also buy index funds, that is, six ETF funds, such as: Yifangda Shen 100 ETF Huaxia SSE 50, AIA Dividend ETF, with low fees and fund handling fee of eight thousandths. No stamp duty is required.