FOF=FundofFund, that is, the fund in the fund. General funds invest in stocks, bonds and commodities, while FOF invests exclusively in funds.

In the past, only private FOF was issued to high-net-worth customers in the market, and the investment destination was not limited to public funds. More products were invested in trusts, special accounts, asset management and private placement.

After the public offering of FOF, it will greatly lower the investment threshold of FOF and give ordinary investors one more investment weapon.

How did FOF perform?

Because of its novel concept, FOF is easily used by issuers to market customers, but its actual performance seems to be unsatisfactory. Judging from the performance of brokerage FOF and private equity FOF in the past year, the overall performance of FOF is too general (of course, there are reasons for the stock market crash, but shouldn't professionals know how to advance and retreat better than ordinary investors, and be more afraid of risks rather than a showdown with one heart and one mind? ), most of them did not outperform the average expected annualized expected return of the market, and only a few FOFs performed better. This means that FOF in the market is more of a new concept. Like QDII in 2007, fund managers in the market generally do not have the ability to manage FOF well.

Ordinary investors can't believe that they have the ability to select a relatively small number of good apples from this basket, and they can't be sure that these good apples will not turn into rotten apples next year. This is the embarrassment of FOF private placement, lack of supervision and transparency of public offering, and it may take 5- 10 years to gradually screen out relatively reliable FOF institutions.

How to improve the FOF public offering plan?

Judging from the published draft for comments, the public offering FOF has the following important clauses, all of which are quite good:

More than 80% of the assets are invested in public funds.

Holding a single fund does not exceed 20%

Don't catch FOF

Funds are not allowed to hold complex derivatives of graded funds.

It is forbidden to hold funds with a time of less than 1 year and a scale of less than 1 100 million yuan.

Do not charge management fees, custody fees, subscription and redemption service fees repeatedly.

FOF management must be an independent department, and fund managers may not concurrently serve as other funds.

What do I suggest?

Experienced the wave of 07QDII boasting and fooling around in 2007 with a loss of as high as 70%, I have a lingering fear of the trading ability of new variety fund managers.

However, since ordinary fund investors do their own FOF, public offering FOF is more transparent than private offering FOF, which allows investors to better understand fund portfolio investment by studying FOF quarterly report and changes in holding base, and have various learning objects in asset allocation (such as what QDII to allocate and various asset allocation ratios), timing, and whether similar funds choose their own corporate funds.

Therefore, I will not easily invest in new public offering FOF in the future, but I will definitely study every public offering FOF.

The trend of internet financial management is changing, and a single investment product can no longer meet the needs of investors. Asset allocation can spread risks and take the initiative to choose opportunities. There is no tool to allocate assets more easily than a fund portfolio.

Public offering FOF fund is the best learning object for investors to make fund portfolio and even asset allocation, and there is no one. (Author: Shen Yuan)