Fof, Chinese name is fund in fund. The great difference between (FOF) and open-end fund is that the fund in the fund takes the fund as the investment base price, while the fund takes the commercial paper such as individual stocks and bonds as the investment base price. It helps investors to improve the actual effect of fund investment by selecting funds according to technical professional institutions.

FoF(FundofFund) is a kind of fund that invests in other investment funds. FoF does not immediately invest in stocks or bonds, and its investment scope is limited to other funds. According to other securities investment funds, they indirectly own securities property such as stocks and bonds. It is an excellent fund variety that integrates fund innovative products and independent innovation of marketing channels.

On the one hand, FoF binds multiple funds together, and investing in FoF is equivalent to investing in multiple funds at the same time, but the cost of their respective investments is greatly reduced; On the other hand, unlike pure sales work plans such as fund mall and fund sales,

FoF thoroughly selects the laws and regulations of the fund and carries out the actual operation according to the operation mode of the fund; FoF includes the long-term investment strategy in the fund sales market. Like other funds, FOF is a financial derivative that can be invested for a long time.

Second, what are the characteristics of fof?

To put it simply, the characteristic of FOF is that the expected annualized expected return is stable, and the risk is smoothed twice according to the diversified investment fund. Its operation cost is low and the risk is small. But it is not easy to operate, especially for novices and beginners. The key is that fof expects low annualized expected returns!

Third, how to buy fof?

At present, in China, FOF belongs to financial institutions and securities companies to invest in wealth management products, and FOF products focus on blue chip funds and closed-end funds. Different from Public Offering of Fund, FOF wealth management products issued by securities companies generally have expected annualized expected income compensation distribution. As required by the enhanced fund selection scheme of Guangfa Bank, the deducted service fee will be used to compensate investors' expected annualized expected income.

At the expiration of the plan, when the expected annualized rate of return (three years) is lower than 8.86%, the manager will compensate the holder with all the service fees deducted from the market share until the expected annualized rate of return (three years) of the market share reaches 8.86% or the service fee compensation ends. (For actual purchase consultation, you can consult securities companies and financial institutions. )

4. What is the future of 4.fof?

Commercialization of FOF is an inevitable trend of development. Naturally, it is unlikely to replace the fund, just as the fund is unlikely to immediately replace its own investors, but FOF products will certainly become one of the indispensable commodities in everyone's financial system in the future. Investors invest in FOF products, but naturally they can't invest all their assets. There must be an effective investment ratio.

We know that Britain, with the most developed financial market, mostly invests half of its family assets in investment funds, but the basic national conditions of China are different from those of the United States. For example, foreigners basically have no deposits, while we in China have more deposits. Therefore, I suggest investors to effectively configure FOF products according to the specific situation of their own homes.

The above is my detailed introduction to FOF. I hope it helps you after reading it.