What is an umbrella fund? Umbrella fund, also known as umbrella sub-fund or umbrella sub-structure fund, is an organizational form of fund. Under this organizational structure. Fund sponsors set up a number of "sub-funds" or "component funds" according to an ordinary fund prospectus, and these funds can be converted according to the prescribed procedures and rates. This fund system composed of these sub-funds is called "umbrella fund". Advantages of umbrella fund,

1. Compared with other single-structure funds, umbrella funds can meet the requirements of different investors in investment objectives, investment targets, investment fields and investment directions, and can attract many investors with different investment preferences more widely under the same brand.

2. Umbrella funds can highlight the characteristics of large scale, complete varieties and unified management, enhance the trust of fund investors in fund brands, help to give play to the advantages of economies of scale and reduce management costs.

3. Umbrella fund also has a powerful expansion function, which can continuously introduce new sub-fund varieties with higher efficiency and lower cost than a single fund according to market demand.

4. From the development of umbrella funds in the international fund market, this kind of funds has become one of the mainstream varieties in the international fund market.