FOF fund is the fund in the fund. Compared with ordinary fund assets that invest in stocks and bonds, the fund assets of FOF fund are invested in other funds. In other words, buying a FOF fund is equivalent to buying a package of funds. FOF funds have professional fund managers to select funds, which is an extra firewall compared with investors directly selecting funds from the market.
What are the specific advantages of FOF fund?
Optimize asset allocation. FOF fund is a portfolio of funds selected by fund managers from many funds, which provides investors with a more professional asset allocation scheme, grasps the long-term main trend of assets, and appropriately disperses risks by relying on the weak correlation between different assets.
In the past two years, the scale of public offering in the fund market has expanded rapidly and the number has been increasing. There are nearly 8000 publicly issued funds in the market. It is very difficult for us ordinary investors to select high-quality funds from so many funds and build a scientific and reasonable fund portfolio that suits them. However, FOF funds can help investors choose funds from a professional perspective, and provide fund products with different risk-return characteristics for different investors.
There are many kinds of assets. FOF funds invest in more kinds of assets than ordinary funds. They can invest in ordinary Public Offering of Fund, QDII funds and commodity funds. At the same time, it still directly invests in assets such as stocks and bonds.
What are the specific disadvantages of FOF fund?
In terms of fees, FOF Fund is a fund in the fund, so there are two managers, and the fees are charged in a double way, and the overall rate is relatively high.