How to choose fof fund?
1. Select the fund type
According to the different investment targets and investment ratios, FOF funds can be divided into stock FOF, bond FOF, currency FOF, mixed FOF and other types of FOF. Investors buy corresponding products according to their own risk preferences. According to the different holding periods of funds, FOF funds in the whole market can be divided into products with no shortest holding period, short-term products of 3 months, 6 months and 1 year, and long-term products of 2 years, 3 years and 5 years. You can purchase the corresponding FOF fund products according to the idle period of funds.
2. Choose a fund manager
The first thing to examine is the management experience and historical performance of the fund manager, to see whether the fund manager has rich experience in managing fof funds, whether he has experienced many rounds of bulls and bears, and whether he can grasp the market cycle. In addition, he should also pay attention to the asset allocation ability of fund managers, such as how to allocate stocks, bonds and commodities in combination. The asset allocation ability of fund managers determines the long-term performance level of fof funds to a certain extent.
3. Look at the risk indicators
Investors can look at the volatility, maximum retracement and Sharp ratio of fof funds, and compare the risk-return ratio of the funds for screening.