1. What are mom and FOF?
MOM investment model is the manager's fund. Through long-term follow-up study on the investment process of fund managers, MOM fund managers choose fund managers who have long-term implemented their investment philosophy, stable investment style and achieved excess returns, and put them in charge of investment management in the form of investment sub-accounts.
FOF is a fund that invests in other securities investment funds. FOF does not directly invest in stocks or bonds, and its investment scope is limited to other funds. Indirectly holding securities assets such as stocks and bonds by holding other securities investment funds. It is a new type of fund that combines fund product innovation and sales channel innovation.
Second, both FOF and mom belong to mutual funds, and there are three differences between them:
1, the investment target of FOF is funds, so FOF invests in products. Mom collects excellent fund managers and entrusts management in the form of sub-accounts, so mom invests in people;
2. Because FOF invests in fund products, the fund has a certain purchase and redemption date, and MOM can flexibly and dynamically adjust the fund and strategy, and its liquidity is better than that of FOF;
3. You need to pay double management fee for purchasing FOF products, and only need to pay sub-fund management fee for purchasing MOM, which is lower.
What are the advantages and disadvantages of 3.FOF/'s mother?
Four advantages:
1, the style of the A-share market is changeable, and it is difficult for private equity funds with a single strategy to cross the bull and bear and maintain a long victory. F0F/MOM improves the strategy richness of products by configuring different strategies. If the correlation between strategies is low, the fluctuation of extreme net value can be smoothed, and in the long run, it can cross the cycle and obtain higher returns.
2.FOF/MOM lowered the capital threshold for investors, and RMB 6,543,800+can be used to invest in multiple strategies. Traditional private placement products need more funds to realize multi-strategy investment.
Mother 3.FOF/ has two levels of risk control. There are requirements and measures for risk control at both the parent fund level and the sub-fund level, while traditional private placement products generally only have risk control at the sub-fund level.
4. The key of 4.MOM products lies in dynamic management. When the market trend suddenly changes, MOM can flexibly adjust its strategy and private fund managers to avoid extreme market decline. Traditional private placement products cannot be changed flexibly due to strategic restrictions.
Two disadvantages:
1, FOF double charge, the rate is relatively high.
2. At present, most FOF/MOM in the market are not in place in the allocation of large-scale assets, and the fund strategies invested are highly relevant, which does not give full play to the advantages of portfolio investment.
Fourth, how to screen FOF and mom?
1. Try to choose FOF/MOM with long establishment time and stable performance.
2. Refer to quantitative research indicators, such as high uplink capture rate and high Sharp ratio.
The relevance of 3.FOF/MOM's strategy should not be too high, and the investment should be diversified as much as possible.
4. Try to choose products with lower rates.