The "parent fund" FOF is a special fund that invests in other securities investment funds. FoF does not directly invest in stocks or bonds, and its investment scope is limited to other funds. Indirectly holding securities assets such as stocks and bonds by holding other securities investment funds. It is a new type of fund that combines fund product innovation and sales channel innovation.
First, the purchase and redemption methods of parent funds and sub-funds are different.
The difference between fof and fund, the financial planner pointed out: In addition to the high threshold of purchase amount, fof has another shortcoming: the opening period is not every day, but according to different brokers, some are open for one week in a quarter, some are open for one day in a week, and other times cannot be bought or sold. Funds are different. Generally speaking, as long as it is not a closed-end new fund, it can be traded every day.
Second, the difference in handling fees between the parent fund and the sub-fund.
Compared with funds, the difference of fof in handling fees is that as the investment product of fof is a fund, as long as the fund has handling fees, it cannot be avoided, so the rate just mentioned is actually a second charge based on the fund handling fees. Simply put, investing in fof costs twice as much.
Although compared with funds, FoFs does not have much advantage, but for novice investors and investors who have no time to manage their portfolios, FoFs is the first choice. The biggest difference between fof and open-end fund is that the fund in the fund takes the fund as the investment target, while the fund takes stocks, bonds and other securities as the investment target. It screens funds through professional institutions to help investors optimize the investment effect of funds.
In order to standardize the operation and filing management of equity investment enterprises established in People's Republic of China (PRC) (including equity investment parent funds targeting equity investment enterprises), the General Office of the National Development and Reform Commission issued the Notice on Promoting the Standardized Development of Equity Investment Enterprises (hereinafter referred to as the Notice on Promoting the Standardized Development of Equity Investment Enterprises) in 2065 10.
It specifically pointed out: "The number of investors is limited. The number of investors in an equity investment enterprise shall comply with the provisions of the Company Law of People's Republic of China (PRC) and the Partnership Law of People's Republic of China (PRC).
Investors are unincorporated institutions such as pooled fund trusts and partnerships. In addition to the investors being the parent fund of equity investment, it is also necessary to check whether the final natural person and legal person institution are qualified investors and calculate the total number of investors. "