FOF is the abbreviation of FundofFund, that is, "fund in fund", which is a wealth management product portfolio launched by banks. It is similar to a fund manager, and its function is to help investors screen excellent funds, avoid the risk of putting eggs in one basket, and adjust and optimize the fund portfolio in time according to market fluctuations, so as to realize effective allocation of the fund portfolio placed in the basket. It is a special fund variety that specializes in fund investment and combines fund product innovation and sales channel innovation.

Pay attention to the following risk points when purchasing wealth management products:

Credit risk: if the principal and interest cannot be repaid due to market changes or debtor's credit default, invest.

In extreme cases, the above-mentioned credit risks may lead to the loss of part or all of the financial principal.

Loss.

Interest rate risk: during the existence of wealth management products, the value and price of product investment targets may be affected by market interest rates.

Fluctuation under the influence of changes may make the investor's income level not reach the customer's reference annualized rate of return.

Liquidity risk: As customers are not allowed to redeem wealth management funds in advance, customers cannot redeem wealth management products before they expire.

The use of funds for wealth management products has also lost the opportunity to invest in other higher-yield wealth management products or capital market products.

Termination of risk ahead of schedule: when there is a major adjustment in relevant policies, the market fluctuates violently and the investment target arrives ahead of schedule.

When other Chongqing rural commercial banks think it is necessary to terminate this wealth management product in advance, the bank has the right to terminate this wealth management product in part or in whole, and investors may not realize all the expected returns at the beginning of the period and will face the risk of reinvestment opportunities.

Deferred payment risk: on the normal maturity date of this wealth management product, if the investment target of the wealth management product investment appears.

If it is not realized in time, or the issuer fails to pay in time, or the relevant debtor under the investment target defaults, the term of this wealth management product will be postponed to the date when all assets are realized.

Legal and policy risks: due to laws, regulations or policies, the principal and income of this wealth management product are not

Risk of profit impact.

Force majeure and accident risk: due to the occurrence of force majeure factors such as natural disasters and wars, the risk is greater.

It will seriously affect the normal operation of the financial market, even affect the normal acceptance, investment and redemption of the wealth management products in this period, and then affect the principal and income security of the wealth management products in this period.

In short, before buying wealth management products, you need to know your risk tolerance. Steady, you can choose savings, banking products, money funds, fixed income products, etc. ; Aggressive, you can allocate some high-risk and high-yield products on the basis of steady investment, such as stock and real estate investment.