Analysis:
Funds that invest in other securities investment funds are called "FOF", which is a fund that combines the innovation of fund products and sales channels. In the United States, FOF achieved rapid development in the 1990s, with the number increasing more than ten times in a short period of 10, and the total assets under management reaching 48 billion. Due to the restriction of China Fund Law, domestic funds are not allowed to invest in other funds. The new product launched by China Merchants Securities circumvented this restriction and achieved the effect of investing in multiple funds at the same time in the name of * * * asset management plan.
The characteristics of fund products themselves are expert financial management and portfolio investment. Taking the fund portfolio as the investment object requires its managers to have quite high fund analysis and evaluation ability. With the establishment and development of domestic fund industry, major securities firms, fund companies and insurance companies have carried out their own fund evaluation research and established their own fund evaluation systems and methods. Taking securities firms as an example, their research departments have formed a comprehensive investigation on the management ability of fund managers through objective evaluation of the historical performance of existing funds and qualitative research on various aspects of fund managers, and finally selected excellent fund varieties to be selected into their own "fund pool" to provide decision-making suggestions for their clients' fund investment.
The existing fund products all have their own related expenses, and the "fund in the fund" with the fund portfolio as the investment object also needs to make profits, so will there be secondary charges in the sales process?
A brokerage researcher believes that "funds in funds" also reflects the innovation of fund sales channels. The source said that as a * * * wealth management product, "funds in funds" have strong bargaining power when purchasing funds, and they can often buy the products of fund companies at more favorable handling fees than retail funds. In this way, by bundling multiple funds together for investment, the cost of investors will be greatly reduced.
"For fund companies, the emergence of' funds in funds' is also a good thing. On the one hand, investors buying "funds in funds" is equivalent to buying fund products in disguise, which correspondingly increases the sales of funds. On the other hand, * * * wealth management products are closed for a long time. If they hold fund products for a long time, it will also help maintain the stability of fund shares and ease the redemption pressure that has caused many fund companies a headache. " The researcher said.