When many people hear about funds, they usually hear more: stock funds, index funds, hybrid funds, money funds, bond funds and so on. But little is known about FOF funds. FOF fund actually refers to investment fund. Simply put, suppose an investor buys a FOF fund, which is equivalent to buying a basket of funds.

According to the different investment targets in trading places, FOF funds can also be divided into two basic types: OTC FOF and OTC FOF.

OTC FOF funds refer to FOF funds sold by third-party platforms, such as Alipay, WeChat, Tian Tian Fund Network and Bank. Generally, you can get a discount when you buy it, which is very favorable.

On-site FOF fund refers to the fund that needs to open an account and is traded on the exchange. On-site FOF funds generally refer to funds that log in securities software to make purchases on the site.

According to the different investment objects and investment directions, FOF funds can be subdivided into the following categories:

Currency type: more than 80% of the fund assets are invested in money market fund shares, and the investment scope and requirements of the remaining fund assets should be consistent with the money fund.

Bonds: More than 80% of fund assets are invested in bond fund shares (including bond index funds).

Equity category: more than 80% of fund assets are invested in stock fund shares (including stock index funds).

Mixed type: investing in stock fund shares, bond fund shares, money market fund shares and other fund shares does not meet the relevant requirements of stock funds, bond funds and money funds;

Therefore, when investing in FOF funds, we can distinguish risks by looking at the main investment directions. Generally speaking, currency risk is the smallest, and stock and mixed risk are the biggest.