FOF fund and LOF fund are both common types of funds in the market, among which LOF fund refers to listed open-end fund; FOF fund refers to the fund in the fund. So what's the difference between FOF and LOF? Which risk is higher? Let's analyze it for you:
What is the difference between p>FOF and LOF?
1. Different investment targets
The investment targets of FOF funds are other funds, which means that investors buying FOF funds are equivalent to buying multiple funds. FOF specializes in investing in funds and does not directly invest in stocks or bonds. LOF fund is a listed open-end fund, which can be used for investment funds, stocks and bonds.
2. Different trading places
FOF funds are OTC funds, so they can only be purchased outside the exchange, such as securities companies, Alipay, banks, etc. LOF can be traded in both on-site exchanges and off-site places.
3. Different fees
The FOF fund itself is a fund, which will charge fees and management fees. In addition, it is also a fund that invests and charges a series of fees, so the FOF fund has a problem of double fees. However, LOF funds only charge a fund fee once, and there is no double charge problem.
4. Different investment thresholds
The investment threshold of p>FOF funds will be higher than that of LOF funds.
5. Different investment risks
FOF funds invest in a basket of funds, and the investment risk (non-systematic risk) is effectively reduced through the second selection of funds by experts, so the risk is small and the income is relatively stable, which is more suitable for stable investors with low risk tolerance; The risk of LOF fund may be higher.
which is more risky, fof or LOF?
LOF funds are riskier than FOF funds.
because LOF funds can directly invest in the stock market for trading, and the fluctuation of the stock market is generally relatively large, the risk of LOF funds is relatively high; The FOF fund is only used to invest in other funds and does not participate in stock trading, so the fluctuation of the fund is small and the risk is small. Moreover, FOF funds have professional personnel to screen funds, so the probability of high-quality funds is high and the probability of sudden risks is low.