FOF is a kind of fund that invests in other securities investment funds, that is, "the fund in the fund". FOF does not directly invest in stocks or bonds, and its investment scope is limited to other funds. It indirectly holds securities assets such as stocks and bonds by holding other securities investment funds. It is a portfolio, the number is unlimited, and the focus of the portfolio lies in effective asset allocation through an appropriate proportion, which also reduces the difficulty for investors to blindly choose a single fund.

What are the advantages of private placement of FOF products by brokers?

1. The investment starting point of private placement products is generally 1 ten thousand yuan, which is also 1 ten thousand yuan. Individual investors can only buy one private equity product, while private equity FOF products can invest in multiple private equity products at the same time. Moreover, through the FOF products of brokers, you can buy the top private equity products on the market. Many of these private equity funds are not open to the public, or the subscription amount threshold is very high. This alone is very attractive.

2. Private equity funds usually entrust the account of cooperative products to cooperative brokers. The advantage of custody is that all positions and transactions of products under custody account can only be found by entrusted brokers. Therefore, the private placement FOF products of brokers have first-hand investment data, which can ensure better investment management ability than ordinary private placement products, and also have better investment strategies and real strength accordingly, so they are more worthy of ordinary people's investment.

3. The managers of private placement FOF products by brokers are usually large brokers, and the ability of large brokers to invest in research, choose private placement and subsequent adjustment is among the best in the industry. In particular, some private FOF products managed by star investment managers have won the hearts of the people and have been snapped up once they are sold. Therefore, as long as ordinary people have enough investment, private placement of FOF products by brokers is a good choice.

It can be seen that as a combination product of multiple funds, the performance of FOF products privately offered by brokers in all aspects is worthy of the trust of ordinary people.