FOF is a special fund that invests in other securities investment funds. Do not directly invest in stocks or bonds, and the investment scope is limited to other funds. Indirectly holding securities assets such as stocks and bonds by holding other securities investment funds.
It can be simply understood that FOF is actually a fund that helps investors buy a "basket of funds" at one time and effectively reduces non-systematic risks through the second screening of funds by experts. It is precisely because of this feature that it is impossible for FOF to fully invest in equity funds in investment funds, and it is necessary to allocate certain currency or bond funds, and the income is lower than that of equity funds.