Simply put, fof funds refer to investment funds, such as money funds, bond funds, stock funds and private equity funds. , mainly investing in the fund portfolio of private equity funds.
According to different investment targets, fof funds also have different types. Details are as follows:
Monetary fof Fund: More than 80% of the fund assets are invested in monetary funds, which is the least risky type of fof funds.
Bond fof Fund: More than 80% of the fund assets are invested in bond funds.
Stock-based fof Fund: More than 80% of the fund assets are invested in stock-based funds.
Hybrid fof funds: FOF funds that invest in equity funds, money funds, bond funds and other funds, but the investment ratio of fund assets does not meet the above requirements.
Other types of fof funds: More than 80% of the fund assets are invested in other types of funds such as commodity futures funds.
In addition, it is worth noting that transactional funds generally have handling fees, while FOF funds are investment funds, which generally involve the issue of secondary handling fees. In addition to its own handling fees, the funds it invests in also have handling fees. Therefore, in order to reduce the transaction cost, we'd better choose the FOF fund with lower handling fee.