The operation process of FOF mainly includes five aspects: product design, strategy formulation, product distribution, product operation and after-sales service. Let's talk about Xuanjia Finance one by one.
▍ Process 1: product design
The link of product design reflects the positioning and direction of FOF in the market, and also reflects the characteristics of FOF itself. In other words, FOF products have played their inherent asset allocation advantages in design. Therefore, a really good FOF product should be superior in the concept and strategy of asset allocation.
As a configuration investment tool, FOF products also fully reflect the characteristics of income and risk. Its investment strategy is to carry out higher-level portfolio investment on the basis of funds, and further reduce the unsystematic risks of assets and provide excess returns through dual and professional management.
▍ Process 2: Policy Setting
In the direction of product strategy setting, FOF is mainly configured from the following three levels: first, the allocation of large-scale assets, then the allocation of category assets, and finally the specific varieties. Therefore, unlike private equity funds that directly invest in various varieties, FOF product design reflects the balance between asset risk and return.
The first level is the allocation of large-scale assets, including stocks, bonds, real estate, bank deposits and so on. Based on macro analysis and pre-judgment, product positioning is carried out according to the current market environment, and the direction of asset allocation is adjusted in time according to market changes.
The second layer is classified assets, that is, the classification of assets between specific varieties and large types of assets, such as blue-chip stocks, shops and houses in real estate, corporate bonds and government bonds in bonds.
The third layer is the specific investment varieties. According to the allocation of large-scale assets and the direction set by category assets, select excellent funds under each subdivision for cooperation.
FOF products can be divided into four types according to the operation mode of FOF parent fund and the types of sub-funds invested, including (AFOAF, IFOAF) in actively managed funds and (IFOAF, IFOAF) in passively managed funds.
▍ Process 3: Product Release
Product issuance is an important link in the operation of each fund product. However, since July 6th, 2006, 20 15 "Measures for the Administration of Private Investment Fund Raising" was implemented, compared with the past, there are more clear and detailed provisions on product issuance.
The "Administrative Measures" covers a number of key points, including not publicly promoting private placement products and achievements, promoting products for specific targets, issuing qualified investor certificates, and returning visits by non-sales personnel to confirm investors' wishes.
▍ Process 4: Product Operation
After the product is released, the next step is the operation of the product. Different from investing in specific varieties, FOF fund's product operation has three steps, and after strict screening, it achieves the purpose of maintaining and increasing the value of assets.
The first step is to use qualitative and quantitative analysis of big data to rank the market securities, futures, bonds and other varieties according to the published performance, and then comprehensively measure the investment target according to factors such as performance ranking, performance stability, performance source, position concentration, position fluctuation range and maximum retracement.
The second step is to screen out the investment targets, and the next step is to deeply understand all aspects of the company. First of all, conduct in-depth interviews and communication with the fund manager of the company, deeply understand the origin and background of the fund manager, and understand his personal investment philosophy, style, personality characteristics, preferences, concentration and ethics; Secondly, make a comprehensive evaluation of other aspects of the company, including investment and research ability, team stability, assessment and incentive mechanism, company culture and so on.
The third step is to comprehensively evaluate the company's risk control system. Why should the company's risk control be listed separately? Because risk control is always the first rule of market survival, if risk control is not good, there will be greater uncertainty behind high returns. The risk exposure behind different products is different, and investors should also think clearly about whether the income is sustainable. In terms of investment structure, some companies allocate more than half of their funds to value targets, 20% to radical targets, while others do the opposite. Therefore, investors should comprehensively evaluate the hidden risks of each company and finally select the company that suits them.
After the above three steps of screening, the next step is to build a portfolio, select high-quality funds according to the direction set by your own product design, and then configure them under the risk control system.
▍ Process 5: After-sales service
After-sales service is an indispensable link in the operation of FOF, which is of positive significance for strengthening communication and exchange with customers and enhancing mutual trust.
For example, envelopes. Although the regulatory authorities have no explicit provisions and mandatory requirements for information disclosure of private equity funds, funds can choose to disclose the latest net product value and other related information accurately, regularly and timely, but good credit approval can enhance investors' confidence; In addition, during the operation of FOF, we will provide customers with perfect technical support to prevent the valuation from being delayed or making frequent mistakes.
These are the five major operational processes of FOF Fund.
Due to the short history of FOF fund in China, there are still some problems in the operation of FOF, such as unclear positioning in product design; There are some phenomena in portfolio management, such as chasing up and killing down, which leads to the sharp fluctuation of FOF performance. There are some problems in product distribution, such as improper marketing and inconsistent charging standards. In terms of product operation, there are some problems such as similar investment targets, unscientific portfolio management and lax risk control. In terms of after-sales service, technical support is not in place and information disclosure is not standardized.
However, with the development of FOF, the problems existing in its operation will also be solved, and the private FOF that adheres to the right path, is sincere and has a high level of business will undoubtedly stand out and go further.