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Is FOF fund risky?

FOF funds have not been in public view for a long time. In October 217, the first batch of FOFs were established. In the past four years, the scale and quantity of FOF funds have flourished. However, there are still many investors who don't know much about FOF funds, and even don't know that there is another FOF to choose from among the fund types.

FOF fund is the fund in the fund, which is different from other funds investing in stocks, bonds and so on.

in October p>217, the first batch of six publicly offered FOF products were officially released. It took nearly four years. By the end of the first quarter of 221, there were 148 publicly offered FOF products in the whole market, with a total scale of 15 billion yuan. Although the number of funds is very small compared with other types, its development speed has been very fast.

While the iron is hot, it needs to be hard. The rapid development of FOF funds is bound to be inseparable from its own advantages. Many investors who have bought FOF funds have said that they can feel the smooth fluctuation characteristics and good holding experience of FOF funds.

FOF funds choose a large-scale asset allocation strategy, and a FOF can allocate various funds such as stock funds, bond funds, gold funds and QDII at the same time. Diversified investment in all kinds of assets can reduce the risk level without sacrificing the expected income, and FOF funds can do this well through the allocation of large types of assets.

Since 217, all FOF funds established in the whole market for more than one year have achieved positive returns, with an average return of 15.95%. In the past three years, the average annualized volatility of FOF in the whole market was 9.56%. Far below the average annualized volatility of 14.96% of all funds in the whole market during the same period.

these characteristics of p>FOF fund make it have better anti-fluctuation ability when the market goes down. In the volatile and downward market, if you are worried that the risk of stock funds is too high, you can consider allocating some FOF funds for balance.