Advantages of FOF fund
1. Solve the problem of fund product screening. At present, the number of fund public offerings in China has exceeded 6,000, and the number of fund managers has exceeded 140. There are many kinds of funds, diversified investment styles, obvious performance differentiation and difficult screening. Ordinary investors don't know about fund managers, fund products and fund managers, and their professional knowledge is limited, so it is difficult to screen out fund products with stable style and excellent long-term performance. FOF can solve this problem well.
2. spread risks. FOF mainly invests in different funds and uses different funds to build a portfolio. Investors investing in a FOF fund is equivalent to further diversification on the basis of fund diversification, and investors will have a better holding experience.
3. Wide investment scope. FOF can choose to invest in a wide variety of funds, which can cover the whole market, including stock funds, hybrid funds and bond funds. , in order to choose the best; You can also participate in on-site fund (such as ETF and LOF) transactions and closed-end fund transactions to seize the opportunity of off-site discount arbitrage. FOF is managed by a professional asset management organization, which can better grasp the market and investment opportunities than ordinary investors.
4. Large-scale asset allocation ability based on macro research. When allocating large-scale assets, FOF makes decisions based on the professional macro judgment of asset management institutions, and reasonably arranges the allocation ratio of equity and fixed-income assets within the scope agreed in the contract. FOF can rationally allocate weakly correlated assets, such as stocks, bonds and commodities, according to macroeconomic changes. You can also invest in QDII funds, allocate overseas markets, and avoid the risk of single market investment.
Although FOF fund has many advantages, it also has advantages and disadvantages. Because the investment target is a fund, the income is lower than other open-end funds, which is more suitable for stable investors.