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Is FOF fund risky? Is it necessary to buy a FOF fund?
FOF fund has not appeared in public view for a long time. On June 20 17, 10, the first batch of FOF funds was established. In the past four years, the scale and quantity of FOF funds have developed vigorously. 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 fund types.

FOF fund is the fund in the fund. Unlike other funds that invest in stocks and bonds, FOF's investment target is other funds.

20 17, 10, the first batch of six publicly available FOF products were officially put on sale. In the past four years, by the end of the quarter of 202 1, 1, 48 FOF products1were publicly sold in the whole market, with a total scale of 105 billion yuan. Although compared with other types, the number of funds is small, but its development speed has been very fast.

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

FOF fund chooses large-scale asset allocation strategy. A FOF can simultaneously allocate various funds such as stock funds, bond funds, gold funds and QDII. Diversified investment in various assets can reduce the risk level without sacrificing the expected income, and FOF funds can do this well through the allocation of large-scale assets.

Since 20 17, all FOF funds established in the whole market for more than one year have achieved positive returns, and the average return is that the average annualized volatility of FOF in the whole market in recent three years is much lower than that of all funds in the whole market in the same period.

These characteristics of FOF fund make it have better anti-fluctuation ability when the market falls. In the volatile downward market, if you are worried that the risk of equity funds is too high, you can consider allocating some FOF funds to balance them.