FOF, commonly known as the fund in the fund, is a fund that mainly or exclusively buys shares of other funds. Funds in English notes are "many funds" invested by FOF funds, while funds refer to "self" of FOF funds.

According to the regulations, the FOF fund must wait until the product is established and started to operate, and its position of holding other fund shares shall not be less than 80% at any time. In this way, in theory, about 20% of each FOF fund can flexibly allocate other assets, but this FOF fund is not "pure", that is, the so-called non-standardized FOF fund. At present, most FOF funds in China belong to this category.

Buy-and-hold strategy: this strategy needs no further explanation, and can be simply understood as holding the base and waiting for growth, which is mainly suitable for long-term investment.

Constant mixed strategy: Take chestnut as an example, a fund invests 60% in stocks, 30% in bonds, and the remaining 10% in cash. When the market fluctuates, fund managers will adjust small-scale investment varieties with the market trend. For example, with the recent surge in steel and coal, they will buy more steel and coal stocks, but the overall proportion of 60% remains unchanged.

But the disadvantage of this strategy is that if steel and coal continue to rise, they will be forced to give up some profits because they can only keep 60% unchanged. The advantage is that in turbulent cities, income is relatively stable.

Portfolio insurance strategy: This strategy invests some funds in risk-free assets on the basis of investing in large-scale assets, which is equivalent to the last insurance. For example, Benben had 100 yuan to invest, but he was afraid of losing all the money, so he put 20 yuan in the bank and invested the rest of 80 yuan.