Fof fund generally refers to the fund in the fund, and FoF (fund in the fund) is a fund that invests in other investment funds. FoF does not directly invest in stocks or bonds, and its investment scope is limited to other funds. Indirectly holding securities assets such as stocks and bonds by holding other securities investment funds. It is a new type of fund that combines fund product innovation and sales channel innovation.

1, FoF binds multiple funds together, and investing in FoF is equivalent to investing in multiple funds at the same time, but the cost of individual investment is greatly reduced;

2. Unlike pure sales plans such as fund supermarkets and fund bundling, FoF completely adopts the legal form of funds and operates according to the operation mode of funds; FoF contains the long-term investment strategy of the fund market. Like other funds, FOF is a financial tool that can be invested for a long time.

Because FoF can't invest in all stock funds in investment funds, it needs to allocate certain currency or bond funds, so the income is not as high as that of stock funds. FOF investment fund, the fund itself has to charge handling fees and management fees, so it is inevitable that there is a double charge for investing in FOF products.

F0f fund features:

1. Advantages: low operating cost and low risk.

2. Disadvantages: it is not easy to operate and the income is low.

3. The risk is relatively small: investment risk is the most concerned issue for every investor. For new citizens, faced with hundreds of different funds in the market, personal choice and risk are not easy. In order to avoid risks, they always want to buy some funds of any kind. Choosing a single fund is risky and difficult, and fof significantly reduces the risk of investment funds through portfolio investment. Fof locks its investors in the ranks of low-risk preference, which also shows its stability relative to funds.

4. The rate of return is slightly lower. Although the brokers who launched FoF all claimed that their products were characterized by "low cost and high return", it was impossible for FoF to fully invest in equity funds when investing in gold, so it was necessary to allocate certain monetary or bond funds, and the return was definitely not as high as that of equity funds, especially in a bull market. Funds are long-term investment products. Although this year's rate of return can't be compared with last year's, the return probability of investing in equity funds is theoretically higher than that of the relatively conservative FoF.