How to choose FOF funds in 2023? Depending on the fund's investment target and investment ratio, they are stock FOF, bond FOF, currency FOF, hybrid FOF, and other types of FOF.
If you plan to buy FOF, you must learn to screen FOF.
The editor brings you how to choose FOF funds, I hope it will be helpful to everyone!
How to choose FOF funds?
First, they tend to choose funds with a high proportion of institutional investors.
When institutional investors choose funds, they give more consideration to the investment capabilities of the fund manager, the comprehensive strength of the public fund manager, the yield rate of the product, etc., which may lead to higher and better exploration of "good funds".
Before the large army of individual investors arrives, you may be able to copy your homework patiently.
Second, the fund size cannot be too large, and equity funds are more likely to be funds below 5 billion yuan.
There is a saying in investment: go where there are many people, go less often.
On the one hand, an excessively large scale of equity funds will lead to a decrease in operational flexibility; on the other hand, the circle of competence of fund managers needs to be continuously expanded in order to adapt to the increasing scale.
Third, I prefer active equity funds, while passive equity funds are mostly for allocation.
The history of A-shares tells the market that active equity funds have significant excess returns in the long term.
In the history of public funds, there are many who triple their shares in one year, but few who double in five years, and the process of alternation between bulls and bears is very cruel.
"Old fund managers" have experienced big storms in the market and have been verified by multiple rounds of bull and bear.
Only when the tide goes out do you know who is swimming naked.
Fourth, bond products pay more attention to drawdowns.
The income of bond funds comes from: coupon income and capital gains.
Whether it is a trend or a coupon, it takes time to accumulate profits.
Unable to control the retreat, one day returns to before liberation.
How do ordinary investors select FOF funds? Selecting FOF funds can be based on the following three points: 1. Equity positions. Most FOF funds currently on the market are hybrid FOF funds, but even if they are hybrids, the differences in the equity funds they allocate are also different.
It will be huge.
We can choose based on our personal risk tolerance. If our risk tolerance is relatively strong, we can choose a hybrid FOF with a heavier equity position; if our risk tolerance is relatively weak, we can choose a hybrid FOF with a lighter equity position.
(Note: The level of equity positions can be viewed in the prospectus of the FOF fund) 2. Product lock-up period FOF funds have poor liquidity because of the lock-up period. In fact, the lock-up periods of different FOF funds are very different.
Some FOF funds have a lock-up period of as long as three to five years, while others have a lock-up period of only a few months.
When selecting, you can choose according to your personal needs for funds. If you are not going to use the money for a long time, you can choose a FOF fund with a longer lock-up period; if you have higher requirements for fund flexibility, you can choose a FOF fund with a shorter lock-up period.
FOF funds.
3. Open-end funds with average FOF team capabilities value the fund manager’s ability to select stocks, while FOF funds value the fund manager’s ability to select funds. This can be reflected in two main ways. One: it can be reflected through the historical performance of the FOF fund.
and investment targets to judge the investment capabilities of the FOF team; secondly: if FOF funds want to obtain good returns, they often select some public funds with high-quality long-term performance.
How to buy FOF funds?
FOF funds are also called funds of funds. When we subscribe for a FOF fund, it is equivalent to buying a basket of funds.
If we want to invest, we can purchase it through banks, fund company websites, securities company business departments and securities shareholder accounts.
For example, in Alipay, if we click on the fund management interface and directly search for "FOF" in the search bar, all the FOF funds sold on the platform will be displayed for us. If we have a favorite FOF fund, we can also directly search for its name or code.
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How to choose FOF funds?
FOF funds have professional institutions or experts who are familiar with the financial market to screen the funds. The selection of good funds is the same as the legal form of the fund. It is operated according to the operation mode of the fund. It is a long-term investment financial product.
After knowing that FOF funds are investment funds, I believe many friends will have concerns about handling fees and whether it will involve secondary charges.
Because in addition to its own handling fees, the funds it invests in also have handling fees. We not only have to pay the handling fees of the FOF fund, but also bear the handling fees of the funds invested by the FOF fund, which is equivalent to a second
TOLL.
However, generally because internal FOF is buying your own company's funds, the handling fee may be relatively low.
According to past data, the overall income situation is very good, and the maximum drawdown of most FOF funds is less than the CSI 300.