FOF (fund in fund) refers to the fund in fund. Unlike open-end funds with stocks and bonds as the main investment targets, FOF can hold multiple funds at the same time, and according to the risk preferences of different investors, its products can be subdivided into stock type, fixed income type, allocation type and alternative investment type.

In China, FOF is a wealth management product of banks and brokers, which means it can be purchased from banks and brokers. In addition, Tian Tian Fund Network and other third-party consignment platforms can also purchase fof funds.

There are two differences between FOF and general open-end funds:

The opening period of FoF shall be stipulated by the brokerage firm. Different brokers have different opening periods. It may be held once a quarter or once a week. Funds are different. Generally speaking, as long as it is not a closed-end new fund, it can be traded every day.

The cost is different: because FoF's investment product is a fund, as long as the fund has a fee, it cannot be avoided. The rate is actually the second fee based on the fund handling fee. In short, investing in FOF will pay double the cost.

Similarly, the investment risk of FoF is relatively low compared with the fund.

We can find that compared with funds, FoF has little advantage. But FoF is suitable for novice investors and investors who don't have time to manage their portfolios.

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