What is the difference between fof and fund products?
1 The fund has different investment objects.
General fund products usually directly invest in one or more different asset types, such as stocks, bonds, money market products, etc., in order to achieve the purpose of diversifying asset allocation and reducing risks. However, FoF does not directly invest in stocks or bonds, and its investment scope is limited to other funds. By investing in other fund products, the portfolio is indirectly reconfigured to form a more diversified and flexible investment strategy.
2 Fund investment threshold is higher.
The investment threshold of general fund products is usually low, and some funds can even start at 1 yuan. Investors can invest by purchasing fund shares. However, the investment threshold of some FOF products is relatively high, such as 65,438+10,000 yuan for brokers and fund subsidiaries, and FOF 1 10,000 yuan issued by private equity institutions.
3 Low liquidity
Another disadvantage of FoF is that the opening period is not every day, but according to different brokers. Some open for a week in a quarter, some open for one day in a week, and it is impossible to buy or sell at other times. Funds are different. Generally speaking, as long as it is not a closed-end new fund, it can be traded every day.
4 The risk is relatively small
Choosing a single fund is risky and difficult, and FoF greatly reduces the risk of investment funds through portfolio investment. FoF locks its investors in the ranks of low-risk preferences, which also shows its stability relative to funds.
5 The yield is slightly lower
Although the brokers who launched FoF all claimed that their products were characterized by "low cost and high return", it is impossible for FoF to invest in all stock funds, so it is necessary to allocate certain currency or bond funds, and the return is definitely not as high as that of stock funds, especially in a bull market.
FOF products must be the general trend of future development. Of course, it can't replace funds, just as funds can't directly speculate stocks instead of individual investors, but FOF products will definitely become one of the indispensable products in our financial market in the future. Investment needs to be cautious. Here, Bian Xiao still advises investors to rationally allocate FOF products according to their actual family situation.