What are the advantages of FOF fund?
(1) Optimize asset allocation
FOF fund is a portfolio of funds selected by fund managers from many funds, which provides investors with a more professional asset allocation scheme, grasps the long-term main trend of assets, and appropriately disperses risks by relying on the weak correlation between different assets.
(2) Choose the best among the best
In the past two years, the scale of public offering in the fund market has expanded rapidly, and the number is also increasing. At present, there are nearly 8,000 Public Offering of Fund in the market. For ordinary investors, it is very difficult to select high-quality funds from so many funds and build a scientific and reasonable fund portfolio that suits them. However, FOF funds can help investors choose funds from a professional perspective, and provide fund products with different risk-return characteristics for different investors.
(3) Various types of assets.
FOF funds invest in more kinds of assets than ordinary funds. They can invest in ordinary Public Offering of Fund, QDII funds and commodity funds. At the same time, you can also directly invest in stocks, bonds and other assets.
What is a FOF fund?
(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.
Generally speaking, FOF funds can help investors diversify their risks. Although the income itself is not high, the fluctuation is small and the risk is low. Suitable for many novice investors. Finally, remind investors that the fund is risky and investment needs to be cautious.