FOF funds realize asset allocation by purchasing other funds. You can invest in stock funds, bond funds, money funds and other different types of funds to achieve the purpose of diversifying risks. Investors who invest in FOF funds can obtain a variety of asset allocation and management through a fund product, without having to choose and manage the fund themselves, thus reducing the investment threshold and risk.
The investment portfolio of FOF fund can be designed according to investors' risk preferences and investment objectives, so it can meet the needs of different investors. Compared with direct investment in other funds, FOF funds also have higher transparency and convenience.
In a word, FOF fund is an investment tool to invest investors' funds in multiple funds, which can provide investors with more convenient and diversified investment choices and realize asset allocation and risk management.