When buying a fund, everyone will look at the rate of return of the fund, which is the historical performance. After all, the higher the historical performance of the fund, the higher the probability that the fund will make money in the future. This is a very important reference index. If you plan to buy a FOF fund, you must look at its rate of return.

What does FOF fund mean? Is it guaranteed?

The main investment object of FOF fund is fund, which is a kind of fund that invests in other investment funds, also known as fund in fund. The fund we see every day is equivalent to a basket of stocks, bonds and other assets, and the FOF fund is a fund that has invested in a basket of funds. FOF fund is a wealth management product, which does not guarantee capital and does not have the advantage of guaranteeing capital.

Advantages and disadvantages of FOF fund:

Advantages of 1FOF: low operating cost and low risk;

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

The advantage of FOF lies in its low cost, and its management fee and custody fee are lower than those of other active funds. If it is low, the management fee may be 0.6% and the custody fee may be 0. 15%, which is obviously lower than the management fee of other active funds10.5%. For those investors who pursue relatively stable investment income, FOF fund may be a better choice.

FOF fund is a new type of fund that combines fund product innovation and sales channel innovation. Do not directly invest in stocks or bonds, and the 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.

FOF funds, also known as listed open-end funds, can be bought and sold in the secondary market like stocks, and can also be purchased and redeemed in specific institutions. Therefore, FOF funds have the dual attributes of on-site funds and off-site funds.