FOF fund, usually translated as "fund in fund" in Chinese, mainly covers other funds. In other words, general funds invest in stocks, bonds and other products, while FOF invests in these funds.
Most investors don't know about FOF funds. What are its advantages?
1, stock funds or hybrid funds cover multiple stocks or bonds, which plays a role in diversifying investment risks. Fof fund covers many other funds, further reducing the risk level. Its risk is less than investing in a single fund. The investment strategy is scattered, the fund manager is scattered, and the investment style is scattered. When FOF encounters a market unsuitable for investment managers, it can be appropriately dispersed to avoid losses.
2. Most investors are inexperienced in asset allocation. FOF funds can reduce risks and improve expected annualized expected returns through scientific allocation and combination. (If you want to make money, you must look at the fund portfolio investment method! )
3. Ordinary investors are generally unable to analyze various funds from a professional perspective. In the domestic private equity fund industry, there are more than 654.38+00000 products, which is five times the number of stocks. Only professional institutions can effectively help investors to screen out advantageous funds, so as to obtain stable expected annualized expected return on investment. (Ant Wealth VS Tian Tian Fund Network, which is stronger? )
Further reading
Beginners must look at knowledge to teach you how to buy funds.
How to buy a fund and make a fixed investment? Teach you the method of fund fixed investment by hand
Five ways to buy funds to raise wages and invest funds to make profits.