Umbrella trust and FOF are not the same thing

1. Definition:

1 Umbrella trust is the product of drawing lessons from umbrella fund. Umbrella trust means that the same trust product contains two or more different types of sub-trusts, and investors can freely choose one or more of them for portfolio investment according to their investment preferences to meet different investment needs.

2FoF(Fund? of? Funds) is a special fund that invests in other securities investment funds

2. Advantages:

1 Other trusts can only be converted into funds through redemption or securities trading, but investors of umbrella funds can directly convert among their funds. Umbrella fund enables investors to allocate different proportions of stocks and bonds according to their own risk tolerance, and make convenient conversion to diversify investment risks. In addition, the umbrella fund manager is not one person, but a wealth professional management team set up by each fund. Managing different funds according to their expertise can spread the operation and management risks of a single manager, and it is usually more advantageous than a balanced fund operated by a single manager.

the advantages of p>2FoF are: higher income and compensation mechanism;

3. Features:

Umbrella trust:

1 The threshold for inferior investors is relatively low, only 5 million yuan or more is enough, and it will be increased every 1, yuan, with the principle of not exceeding 2 million yuan; Individual investors can be inferior; The total cost of financing is low,

2-year income: about 11.5%-13%;

3 flexible financing ratio: divided into three grades: 11: 121: 1.531: 2;

4 The investment period is flexible: there are two rotating varieties of 6 months and 12 months; The investment scope is wide, except "*S*ST, SST; Shares such as the trustee's affiliated company cannot be invested, and other stocks can be invested; The proportion of positions is relatively flexible, and the maximum amount of a single stock is 2% of the assets of a single trust unit; However, a single stock in a single trust unit shall not exceed 2% of the assets of the whole trust plan and 5% of the circulating share capital of the listed company; The income of inferior investors can be cashed in advance; The contract term can also be extended.

FOF

1FOF products are not a simple portfolio of funds. The initial purchase amount of FoF is basically 1, yuan, and the opening period is not every day, but according to different brokers. Some are open for one week in a quarter, and some are open for one day in a week, so you can't buy or sell at other times.

2 since the product invested by FOF is a fund, its handling fee is a second charge based on the included fund handling fee, that is, investing in FOF will pay a double fee. Will double investment expenses bring double investment returns? Because it is impossible for FoF to invest in all equity funds, it needs to allocate certain currency or bond funds, and the income is generally not as high as that of equity funds.

3 However, compared with the high risk and difficulty of selecting a single fund, FoF has greatly reduced the risk of investment funds through portfolio investment. Through the screening of funds by professional institutions, investors can realize the investment strategy of "a basket of funds", effectively reduce the non-systematic risk and achieve stable income, which is a good choice for novice investors and investors who have no time to take care of their portfolios.