This is the easiest way to differentiate between onsite and offsite funds.

On-exchange funds refer to funds traded on exchanges. OTC funds have more subscription and redemption channels, and can be purchased through banks, securities companies or third-party financial management platforms.

OTC funds are purchased through third-party financial platforms.

Generally speaking, the subscription fee is discounted, while the redemption fee is determined based on the holding time.

Generally speaking, the shorter the holding period, the higher the redemption rate.

The trading fees for on-site funds are based on the commission rate signed between the customer and the securities company, and whether there is a minimum limit of 5 yuan for a single transaction.

The trading price of the Exchange Fund is a published price that changes in real time, while the trading price of the OTC Fund is a fixed price.

Compared with the minimum investment of 10 yuan in OTC funds, OTC funds have a higher threshold and need to be started directly.

If you buy an OTC ETF, you need $1 million.

On-exchange funds can be sold on the T1 day after purchase, and can be used after the transaction is successful.

Under normal circumstances, OTC funds can only be redeemed within 2 days after subscription, and the arrival time of funds is generally 1-7 working days.

The dividend method of on-site funds is only cash dividends, while over-the-counter funds can make cash dividends and dividend reinvestment.

The advantage of exchange-traded funds is low cost, and exchange-traded funds have lower interest rates when buying and selling.

Therefore, it still has certain advantages in terms of cost, especially the removal of the minimum limit of 5 yuan for a single transaction.

The disadvantage of on-site funds is that manual trading is more troublesome and it is impossible to set a fixed investment plan.

There are very few funds on the market, and the number of funds on the market is also very small, so the option range is relatively small.

The advantage of OTC funds is that they do not require opening an account.

Investors can purchase directly from banks, Alipay and WeChat without opening a special account.

The disadvantage of OTC funds is their inefficiency.

OTC funds take a long time to redeem and receive funds, and the fund utilization rate is very low.

High cost.

OTC fund subscription fees are generally 1%~1.5%, and the 10% discount for purchasing third-party financial platforms is 0.1%~0.15%.

Transaction costs remain relatively high.

Although Class C funds have no subscription fees and redemption fees after long-term holding, the sales and service fees are higher.