Compared with other "fixed income+"strategic products, what advantages does FOF fund have?
The biggest feature of FOF fund is that it can attack and defend.
Offensive advantage of FOF fund
First, the dual functions of FOF fund. FOF funds can not only directly participate in innovation, but also invest in funds with innovation opportunities. Theoretically, there can be a double innovation effect. In contrast, the gene investment scope of "fixed income+"strategy is limited and cannot be innovated.
Second, FOF funds can realize diversified asset allocation. In addition to stock and bond assets, FOF funds can also allocate QDII funds and gold ETF assets. Diversified allocation of assets can achieve the effect of diversification of investment, which is expected to reduce the volatility of portfolio.
Third, the division of labor is clear, and all kinds of asset management are specialized. The investment strategy of FOF fund is divided into two parts, one is the allocation of equity assets, the other is the allocation of non-equity assets, the equity part is allocated with high-quality equity funds, and the non-equity assets are allocated with high-quality fixed-income funds to realize the professional management of various assets.
Defensive advantages of FOF fund
In addition to good and steady offensive advantages, FOF funds can also allocate non-equity assets by selecting excellent bond funds, which can effectively reduce the credit risk of portfolio while maintaining the attractiveness of portfolio yield.
In addition, if the credit risk is found in the bonds held by bond funds, the risk can also be quickly stripped by redeeming the funds.
I hope the above contents are helpful to you.