There are many types of fund investment, such as money fund, bond fund, stock fund, hybrid fund, index fund and so on. Today, Xi Cai Jun will tell you something about etf and fof, which we are not familiar with, and the differences between fof and etf?

What is a fof fund?

FOF funds are classified according to investment targets, which are different from stock funds, bond funds and money funds. FOF fund refers to the main investment fund.

Fof funds invest in other funds, not directly in stocks or bonds. This is an innovative fund variety. Buying a FOF fund is equivalent to buying a basket of funds.

According to different investment funds, fof funds can be divided into * * * mutual fund fof, hedge fund fof and private equity fund fof. According to the different trading places of investment targets, it can also be divided into two basic types: OTC fof and OTC fof. According to the management type, it can also be divided into active management type and passive management type.

What is the difference with etf funds?

1. Investment objective is different from investment risk.

Fof fund investment fund, generally invest in more than one fund at the same time. In order to avoid risks, in addition to stock funds, certain monetary or bond funds are usually allocated, with relatively low returns and risks.

Etf funds take a specific index as the tracking object, and investing in etf funds is equivalent to buying a basket of stocks, so the investment risk of etf funds is relatively high and the income is relatively high.

2. Different investment strategies.

Etf is a passive fund, which generally uses passive strategy to track the market index of a certain target. Fof funds can be passive or active.