What is the pension target fund?
Pension target fund is a fund aimed at pursuing long-term steady appreciation of pension assets. This kind of fund is divided into target date strategy fund and target risk strategy fund, and its assets are managed by professional investors (fund managers).
The name of a strategic fund with a target date, such as 2035, is suitable for investors who retire around 2035. As the retirement date approaches, such foundations gradually reduce the investment proportion of equity assets, increase fixed expected income assets and reduce risk fluctuations.
The risk of the target risk strategy fund is fixed and will not change with time. Such funds have agreed in advance on investment and pension schemes with different risk levels, and investors can choose funds with corresponding risk levels according to their own conditions.
What's the difference between pension funds and general funds?
First of all, the pension target fund is the FOF fund.
FOF fund refers to the fund in the investment fund. Simply put, ordinary funds invest in stocks or bonds, and pension target funds invest in various funds. It is precisely because there is such a layer between the pension target fund and the investment variety that its investment cost is relatively high.
Two, the general fund can not use the word "pension".
The name of a general fund cannot contain the word "pension". If "pension" is found in the name of the fund, this fund is generally a pension target fund.
Third, pension target funds have higher requirements for fund companies and fund managers.
Pension target funds can only be applied under certain conditions, such as the fund company has been established for two years, the investment and research team has no less than 20 people, and there have been no major violations of laws and regulations in the past three years. For fund managers, more than 5 years working experience is required, and the historical investment performance is stable and good.
The above is the difference between pension funds and ordinary funds. Warm reminder, the fund is risky and needs to be cautious in investment.
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