What kind of investors is fof fund suitable for?
First, entry-level investors, unfamiliar with investment, still hope to maintain and increase the value of assets through appropriate investment;
Second, although I have certain investment experience and knowledge, I am busy with work on weekdays and have no time and energy to invest in selecting bases and asset allocation. For these two types of investors, FOF fund can solve the problems of difficult base selection, difficult timing and difficult direction selection.
Third, high-net-worth people, such investors have relatively large assets, and the security of assets is higher than the potential high returns in the priority of investment objectives. For this kind of investors, the withdrawal of FOF funds is well controlled and can bring positive benefits to the holders. Although the income is not as good as the stock base, and in the long run, the income of FOF is 6%- 10%. For investors with a large number of stock assets, this can already bring considerable absolute returns.
What are the fof funds?
(1) stock FOF. More than 80% of fund assets are invested in stock fund shares (including stock index).
(2) Bond FOF, more than 80% of fund assets are invested in bond fund shares (including bond index funds).
(3) Currency FOF, more than 80% of the fund assets are invested in money market funds, and the investment scope and requirements of the remaining fund assets should be consistent with the money market funds.
(4) Mixed FOF that invests in stock fund shares, bond fund shares, money market fund shares and other fund shares and does not meet the relevant requirements of stock funds, bond funds and money funds.
(5) Other types of FOF, that is, FOF invests more than 80% of fund assets in other types of funds. For example, if FOF invests more than 80% of the fund assets in commodity futures funds, the fund belongs to commodity futures funds.
Of course, funds need long-term investment, so it is necessary for all three investors to hold them for a long time. Fof fund takes the fund as the investment target, with relatively low risk and stable income, but relatively low compared with the stock base. If you want your wealth to grow steadily, then FOF can be your choice.