1. As the name implies, internal FOF mainly invests in funds owned by fund managers, and the proportion of investment in self-owned funds is generally not less than 80% of non-cash assets.

2. The whole market FOF refers to the selection of funds for investment from the products of all fund companies in the whole market. The investment scope of the whole market FOF is wider than that of the internal FOF, which can theoretically provide investors with more diversified configurations, and the overall investment cost will be higher than that of the internal FOF. In China, the management fee, redemption fee and sales service fee of the fund invested by FOF are exempted for the part invested by FOF in its own fund. However, if FOF invests in funds managed by other companies, these fees cannot be exempted, which means there will be double charges. Therefore, the internal FOF, which mainly invests in its own funds, is more dominant than the whole market FOF in terms of rates, but it also requires fund companies to have a relatively complete product line and strong comprehensive investment and research strength.