A fund in a hybrid fund (FOF) refers to a fund that invests in other funds. By purchasing different types of funds, we can realize the decentralized allocation of different asset categories and avoid the risks brought by a single fund. FOF can invest in both funds managed by the same company and funds managed by different companies, which can further spread risks.

FOF is usually divided into two types: target funds and managed funds. Target funds usually invest in various assets such as stocks, bonds, real estate and commodities, while management funds are funds used to invest in target funds. FOF will charge an extra management fee, but it can also help investors get better investment performance and risk management without knowing the market.

FOF is different from ordinary funds. Its advantage lies not only in the diversification of assets, but also in saving time and energy for investors to choose their own funds. The disadvantage is that the management cost is high, which may reduce the total income of investors. In short, understanding the advantages and disadvantages of FOF investment can help investors better understand FOF and allocate assets effectively.