In recent years, against the background of the shrinkage of fixed-income products and the continued structural market conditions, product types with risk diversification and stable returns have been favored by investors. As a result, Fof funds have attracted increasing attention. This article focuses on the Fof fund, and the details are as follows.

Are FOF funds public or private?

Fof funds are divided into product forms, including both public FOF and private FOF. Private equity FOF has a long history of development and is also known as FOHF (Fund of Hedge Funds) overseas, which is a fund of hedge funds. my country's first private equity FOF was established in 2006, but its development progress has been slow. It was not until 2014, when the China Securities Regulatory Commission issued the "Interim Measures for the Supervision and Administration of Private Equity Investment Funds" that allowed the investment scope of private equity funds to expand to fund shares, that private equity Fofs began to grow significantly, exceeding 1,000 for the first time in 2015.

As of December 12, 2022, there are as many as 6,184 domestic private equity FOF products, mainly from self-issuance by private equity funds, public offering accounts, securities firm asset management, etc., of which self-issuance by private equity funds accounts for 40 %, is the main source.

What is the difference between fof funds and ordinary funds?

1. Investment targets

The investment targets of fof funds are funds, while the investment targets of ordinary funds are stocks, bonds, etc. Securities.

2. Investment method

The investment method of FOF funds is indirect investment and various financial assets, while the investment method of ordinary funds is direct investment and various financial assets.

3. Manager

The managers of fof funds are two-tiered, namely the parent fund manager and the sub-fund manager. An ordinary fund has only one fund manager.

4. Operation idea

The operation idea of ????fof funds is to find and allocate suitable assets, while the operation idea of ??ordinary funds is to choose suitable market opportunities.

The above are some contents of the fof fund, you can pay attention to it.