FOF is the general name for English Fundoffunds, and is generally referred to as "the fund of funds", that is, this type of fund does not directly invest in stocks or bonds, but only invests in equity funds. You can think of FOF as a fund buyer, using its expertise to carry out fund selection and timing allocation, to provide investors with one-stop services.

Why choose FOF for investment?

Compared with the well-known stock funds or mixed funds, FOF has many advantages:

Diversification of risks Safety: FOF products are selected and allocated by professional staff through quantitative analysis and judgment, etc., which makes the performance of the selected funds more guaranteed. Compared with investing in a single fund, the risk is diversified Better working ability.

Reduce the investment threshold: Due to the limited investment threshold of some products, ordinary investors are usually unable to invest in multiple different asset management products, but FOF can reduce diversified investments for ordinary investors. The threshold allows it to invest in multiple funds at a lower cost, greatly increasing the types of funds invested and enriching the investment types of ordinary investors.

Obtain excess returns through financial planning: FOF can carry out more professional asset allocation. If funds with consistent styles can be allocated in suitable markets, there is hope for higher returns. excess returns;

In China, all the elderly care target funds that have been launched use the public fund FOF method, such as E Fund Huicheng Senior Care Target Time Series Funds, which use the target time The strategy will gradually reduce the allocation proportion of equity assets as the target time approaches, which can well match the characteristics of investors' risk tolerance that gradually decreases as they age. Abroad, FOF is also an important way to invest in elderly care services. As we all know, pension funds need to make steady profits in the long term, and they often choose the FOF model because they are optimistic about the inherent risk diversification characteristics of FOF.