Umbrella fund refers to the fund operation mode of setting up several sub-funds under a parent fund, and each sub-fund makes independent investment decisions. Its main feature is that it can provide investors with a variety of choices within the fund, and investors can change the fund type according to their own needs (without paying the conversion fee), thus providing investors with certain choices without increasing the cost. Compared with other single-structure funds, umbrella funds have the following structural characteristics: first, they can meet the requirements of different investors in investment objectives, investment targets, investment fields and investment directions, and can attract many investors with different investment preferences more widely under the same brand. Secondly, umbrella funds allow investors to freely switch between multiple fund products according to changing market conditions and investment preferences, and only need to pay a fairly low fee or even no cost when switching. In addition, umbrella funds can not only highlight the characteristics of large scale, complete varieties and unified management, but also enhance the trust of fund investors in fund brands, which is also conducive to giving play to the advantages of economies of scale and reducing management costs.

Finally, the umbrella fund also has a powerful expansion function, which can continuously introduce new sub-fund varieties with higher efficiency and lower cost than a single fund according to market demand. Low management fees charged: As all the sub-funds under the umbrella fund operate under the same management framework, it can highlight the characteristics of large scale, complete varieties and unified management of the fund, so that the umbrella fund can enjoy economies of scale in custody, audit, legal services and management fees, reduce management costs and broaden the downward space for the fund to collect management fees. Investors can easily switch between sub-funds under umbrella funds: umbrella funds can provide investors with a variety of investment options, and investors can easily choose and switch different sub-funds according to changes in market conditions.