One of the disadvantages of FOF funds is the double charging mechanism.

Since there are two managers of FOF funds, namely the parent fund manager and the sub-fund manager, naturally, when FOF funds charge management fees to investors, there will be double charges.

However, investors also need to realize that part of the management fee of FOF funds is paid to the parent fund manager. They can prevent investors from suffering greater risks due to investing in a single fund, and can also help investors choose better targets.

and make timely investment recommendations.

If you can choose a better fund by paying a few thousandths more in management fees, it is still worth it.

The second is that during the bull market, the income of FOF funds is relatively lower than that of stock funds.

This is also an unavoidable problem. After all, the principle of FOF funds is to invest funds in several funds to pursue stable returns while smoothing fluctuations and diversifying risks.

Therefore, after diversifying risks, FOF funds will also diversify part of the returns.