The main feature of umbrella fund is that it can provide investors with a variety of choices, and investors can switch fund types according to their own needs (without paying switching fees), without increasing costs, and provide investors with certain choices.

The essential feature of umbrella fund is that some sub-funds share the above umbrella, which is a fund contract. The organizational structure of a single fund is relatively simple, and the fund contract is held separately. Umbrella funds adopt an open management mode.

The advantages of umbrella funds are mainly reflected in

First, the management fees charged are relatively low. All the sub-funds under umbrella funds operate within the same management framework, which better emphasizes the characteristics of large fund scale, complete varieties and unified management, so that umbrella funds have economic advantages in management, auditing, legal services and management fees, and reduce management costs. The management fees charged for the fund expand the downside.

Second, investors can easily switch between sub-funds under the umbrella fund: the umbrella fund can provide investors with a variety of investment options, and investors can simply choose different sub-funds to switch according to the changes in market conditions and the operating performance of each sub-fund.

Third, the cost of switching between sub-funds is low. Switching between single funds, It usually takes at least one week from the application for countersignature of corporate bills to the receipt of repurchase money. Investors of umbrella funds who need to pay a considerable amount of initial purchase fee to convert into new funds can switch fund types at any time according to their own needs, which has the characteristics of short time and low conversion cost. < P > Fourthly, umbrella funds are beneficial to fund management companies to stabilize customers and reduce redemption pressure.