What does the fund type LOF mean

The listed open **is called LOF**. Investors can subscribe and redeem ** shares through the open ** account in the primary market, or buy and sell ** on the secondary market exchange, and organically link the OTC market and the on-exchange market through the transfer custody mechanism.

LOF** can be traded on-exchange and over-the-counter, and investors can take advantage of this feature for arbitrage.

Speed up the transaction, that is, LOF has increased the open ** on-site trading, ** of ** shares can be sold on T+1 day, if the ** money sold refers to the method of ** transaction settlement, it can be used on the same day, and cash can be withdrawn on T+1 day, compared with OTC transactions, ** 1 day earlier than the subscription, and 6 days earlier than the redemption at most.

Reduced transaction costs, i.e. investors trading through the secondary market**, can reduce transaction fees, generally up to a maximum of bilateral fees for buying and selling** units through an exchange.

LOF (Listed Open-ended Fund) refers to an open-ended fund that is listed and traded on the exchange, and its ** shares are redeemed in cash in accordance with the method of "amount subscription and share redemption". Investors can either subscribe and redeem the net value of the shares through the manager or the sales agency entrusted by them, or they can use the trading system to match the transaction price through the exchange market and sell open-ended. LOF is China's localization innovation of **investment**.

What are the characteristics of LOF?

First, the transaction is convenient. Investors can realize the trading and subscription and redemption of all LOF under the same account.

Second, the cost is low. The investment cost of buying and selling LOF shares in the secondary market is significantly lower than the over-the-counter** subscription and redemption costs.

The third is to avoid the risk of stock selection. Entrusting professional institutions to make active or passive investments, investors do not need to pay attention to the situation of ** single ** held at all times.

Fourth, provide liquidity. During the closed period, LOF can also meet certain liquidity needs through secondary market trading, and OTC shares can be transferred to the exchange through cross-system custody to participate in trading.

LOF**: The full name in English is "ListedOpen-EndedFund", and in Chinese it is called "Listed Open**", that is, after the end of the Listed Open** issuance, investors can not only subscribe and redeem **shares at designated sales outlets [banks, **business departments, **company online], but also buy and sell ** in the exchange like buying and selling**, closed**, and can carry out **arbitrage transactions. This kind of trading requires the opening of a shareholder account on the ** exchange.

LOF**, the full name in English is "Listed Open-ended Fund", in Chinese, it is called listed open**. That is, after the end of the listed open-ended ** issuance, investors can not only subscribe for and redeem ** shares at designated outlets, but also buy and sell the ** on the exchange.

However, if the investor subscribes for the ** share at the designated outlets and wants to sell it online, he must go through certain transfer custody procedures; Similarly, if you buy ** shares online on the exchange, and you want to redeem them at designated outlets, you must also go through certain transfer custody procedures.

The difference between open and closed.

1. The variability of the scale is different. The open-ended issuance of ** units is redeemable, and investors can subscribe for ** units at any time, so the size of ** is not fixed; The size of the closed ** is fixed.

2. **Unit transactions** are different. The purchase and sale of open-ended units is based on the net asset value of the units and there is no discount. Closed-end units are more affected by market supply and demand, and fluctuate greatly.

3. ** Units are bought and sold in different ways. Open-ended investors can buy or redeem directly from the management company at any time with low fees. Closed-end buying and selling is similar to trading, which can be bought and sold in the market, and is subject to a handling fee and transaction tax.

In general, the fee is higher than that of an open one**.

4. Different investment strategies. A portion of the open-ended **must be reserved for redemption by investors at any time, and long-term investment is subject to certain restrictions. The closed-end ** is not redeemable, does not need to withdraw reserves, and can make full use of funds, make long-term investments, and achieve long-term business performance.

5. The required market conditions are different. Open-ended ** is more flexible and easy to expand and scale funds, so it is suitable for financial markets with a high degree of openness and large scale; Closed**, on the other hand, is the opposite and is suitable for financial markets that are not yet perfect, less open and smaller.

LOF (Listed Open-ended Fund) is a listed open-ended fund**. Unlike the general open-ended, LOF can be bought and sold in the secondary market just like it. Its ** share is redeemed in cash in accordance with the method of "amount subscription and share redemption".

LOF mainly has the following characteristics:

Convenient trading: Investors can realize the trading, subscription and redemption of all LOF under the same account.

Low fees: The investment cost of buying and selling LOF shares in the secondary market is significantly lower than the over-the-counter** subscription and redemption costs.

Avoid the risk of stock selection: entrust professional institutions to make active or passive investments, and investors do not need to pay attention to the situation of a single stock held by them at all times.

Provide liquidity: LOF can also meet certain liquidity needs through secondary market trading during the closed period, and OTC shares can be transferred to the exchange through cross-system custody to participate in trading.

Difference 1: ETF essentially refers to the open-ended type of the royal number, the chain cavity is passively managed, and the LOF is an ordinary open-ended** that increases the trading method of the exchange, which may be exponential or actively managed.

Difference 2: When subscribing and redeeming, the ETF exchanges **shares and "baskets" with investors, while LOF exchanges cash with investors.

Difference 3: In the primary market, that is, when subscribing and redeeming, the investors of ETFs are generally larger investors, such as institutional investors and large-scale individual investors, while LOF is not limited.

Difference 4: On the net value of the secondary market, the ETF provides a **net worth** every 15 seconds, while the LOF provides a **net worth** every day.

LOF refers to an open-ended investment that is issued, listed and traded on an exchange. After the end of the listed open-ended ** issuance, investors can either subscribe for and redeem ** shares at designated key outlets, or buy and sell the ** on the exchange, its full name in English is "listed open-ended fund", which is called in Chinese"Listed open**"。The listing can be subscribed and centralized trading through the exchange, as well as subscribed, subscribed and redeemed by managers, banks and other distribution agencies.

The LOF type ** has three characteristics of the main manuscript answer:

1) The listing is still open-ended in nature, and the total amount of shares is not fixed, and the shares can be subscribed and redeemed at the time and place agreed in the contract.

2) The listing of the open ** offering combines the sales advantages of banks and other distribution agencies and the trading network of the Shenzhen Stock Exchange. The outlets of banks and other distribution agencies still follow the current sales method of business counters, while the trading system of the Shenzhen Stock Exchange adopts the common online pricing and issuance method of new shares.

3) After the listing is allowed to be listed and traded on the Shenzhen Stock Exchange, investors can choose to subscribe for and redeem ** shares at banks and other distribution agencies according to the ** positive net value of the market closing on the same day, or they can choose to buy and sell ** shares at the combined transaction price at the ** business department of each member of the Shenzhen Stock Exchange.

**LOF is a listed open-ended**, which is different from the general open**, Tanchang investors can not only subscribe and redeem **shares** at designated outlets, but also buy and sell the ** on the exchange. The full English name of lof** pure smile is"listedopen-endedfund"The total amount of LOF** ratio is not fixed, and the ** proportion can be purchased and exchanged at the time and place agreed in the contract.

There is no absolute difference between the on-exchange and off-site subscription methods of LOF. It's just that because the buying and selling of the secondary market depends on the net value of its shares, it is also related to the supply and demand of the market, therefore, there will be a discount and a premium in the secondary market, and there is room for arbitrage.

If an investor subscribes for the ** share at a designated outlet and wants to sell it online, he must go through certain transfer custody procedures; Similarly, if you buy ** shares online on the exchange, and you want to redeem them at designated outlets, you must also go through certain transfer custody procedures.

LOF** divides risk into two levels. Tier A has a lower risk, similar to fixed income products, with a certain amount of income per year. Grade B is equivalent to borrowing A's money to invest in ** high-risk products, with increased leverage and higher risk.