At present, many banks are pushing FOF(Fund of Funds) for VIP services, that is, fund products invested in various funds, such as China Merchants Fund Bao, Guo Xin Financial Classic Portfolio, Huatai Zijin No.2, Everbright Sunshine No.2 and so on. One of the selling points of FOF is peace of mind, because frequent transfer from one fund to another is something that many people like to do at present, and it is more difficult for individuals to choose the fund with excellent performance in the next stage, so FOF is born because of its love. Some people call it "the darling of the market".

Features of FOF

FOF is a kind of collective wealth management product with open-end fund and closed-end fund as the main investment targets, which combines fund product innovation and sales channel innovation. The biggest difference with other funds is that FOF investment funds do not directly invest in the stock market.

As a fund, FOF not only has the stable characteristics of general funds, but also has higher expected annualized expected returns compared with bond funds and monetary funds, which can be described as "double insurance" for financial management. FOF with low risk and high expected annualized expected return can help investors buy a "basket fund" at one time, and effectively reduce non-systematic risks through second selection. It can be said that it is a financial product with low risk and high expected annualized expected income.

In terms of investment, FOF generally does not invest in all equity funds, but chooses a certain proportion of monetary or bond funds. In this way, FOF binds multiple funds together. Investing in FOF is equivalent to investing in multiple funds at the same time, but the cost of independent investment is greatly reduced. FOF contains the long-term investment strategy of the fund market. It is a financial tool that can be invested for a long time, just like other funds.