The fixed-term pension FOF can only be purchased and redeemed during the regular opening period, and can be purchased and redeemed at other times.
Why should we set the holding period for the old-age FOF and what is the basis for setting different holding periods?
First of all, FOF is divided into target risk type and target return type. The target risk type is to determine its risk characteristics according to the allocation ratio of high-risk and low-risk assets. According to different definitions of risk, equity investment is divided into three grades: within 30%, within 60% and within 80%, which correspond to steady, balanced and enterprising respectively.
The target date type is a fund that aims at the retirement date of investors and allocates investment according to the risk tolerance of different life stages, such as the Southern Pension 2035 Hybrid (FOF).
According to the regulatory requirements and risk target level, the holding period of equity investment is required to be 1 year within 30%, 3 years within 60% and 5 years within 80%. Therefore, the holding period of stable FOF in the market is generally 1 year, while the holding period of balanced FOF is generally 3 years. On this basis, we can choose the FOF products suitable for our own risk preference.
In addition, there is a common phenomenon in the fund market that funds make money while people don't. Mainly intraday trading, chasing up and down, short-term operation, setting a fixed holding period. Pension FOF is mainly aimed at the future pension plan, which takes a long time to achieve the investment goal and requires long-term investment. Fixed holding period is set to avoid short-term game between investors, guide long-term investment, and also help managers to give full play to the ability of asset rotation allocation.