There is a fund called fof Fund, and many investors may not know what it is. Fof fund is also called the fund in the fund, and the investment target is the fund. Compared with other common funds, fof funds have distinct characteristics and many advantages, but there are also some disadvantages. What are the advantages and disadvantages of fof fund?

What are the advantages and disadvantages of fof fund?

Advantages:

1. Highly professional.

FOF fund decides the investment target through senior researchers and investment meetings, so its decision-making will be more professional and scientific, and its grasp of the market will be more accurate. Compared with individual investors, FOF funds dare to open positions at the bottom of the market and throw them at high positions.

spread risk

Investing in FOF funds is equivalent to indirectly investing in a variety of fund products. The professional parent fund team is very good at asset allocation, and can obtain a certain expected annualized income. FOF funds can also reduce fluctuations and ensure the safety of funds.

3. Scaling effect

As a channel, FOF fund can invest in some private equity funds with high threshold or scarce places, because FOF fund can invest the funds raised by individual investors as institutional investors.

Disadvantages:

1. Compared with open-end funds, the expected annualized rate of return of FOF funds is lower and the expenses are higher.

Generally speaking, fof funds have moderate risks and moderate returns, which are suitable for stable investors. That's all. I hope it helps you. Finally, investors need to be reminded that the fund is risky and investment needs to be cautious.