FOF funds are divided into stock FOF, bond FOF, currency FOF, hybrid FOF and other types of FOF according to different fund investment targets and investment proportions.

If you plan to buy FOF, you must learn to screen FOF.

How to choose FOF funds?

First, they tend to choose funds with a high proportion of institutional investors.

When institutional investors choose funds, they give more consideration to the investment capabilities of the fund manager, the comprehensive strength of the public fund manager, the yield rate of the product, etc., which may lead to higher and better exploration of "good funds".

Before the large army of individual investors arrives, you may be able to copy your homework patiently.

Second, the fund size cannot be too large, and equity funds are more likely to be funds below 5 billion yuan.

There is a saying in investment: go where there are many people, go less often.

On the one hand, an excessively large scale of equity funds will lead to a decrease in operational flexibility; on the other hand, the circle of competence of fund managers needs to be continuously expanded in order to adapt to the increasing scale.

Third, I prefer active equity funds, while passive equity funds are mostly for allocation.

The history of A-shares tells the market that active equity funds have significant excess returns in the long term.

In the history of public funds, there are many who triple their shares in one year, but few who double in five years, and the process of alternation between bulls and bears is very cruel.

"Old fund managers" have experienced big storms in the market and have been verified by multiple rounds of bull and bear.

Only when the tide goes out do you know who is swimming naked.

Fourth, bond products pay more attention to drawdowns.

The income of bond funds comes from: coupon income and capital gains.

Whether it is a trend or a coupon, it takes time to accumulate profits.

Unable to control the retreat, one day returns to before liberation.

When purchasing FOF funds, try to choose products from fund companies with strong brand power. Relatively speaking, investment research strength, compliance audits, etc. are more secure.

Furthermore, FOF funds are financial products and are not capital guaranteed.