The fund takes a basket of funds as the investment object, and the fund company selects the best fund according to strict procedures, so as to achieve better return on investment on the basis of controlling risks. FOF funds form a fund portfolio through fund managers. You can buy a package of high-quality funds with one click, which is equivalent to professionals helping you choose a good fund and waiting for you to invest.
At the same time, the FOF fund greatly reduces the risk of the invested fund by investing in the fund portfolio, and this fund portfolio is selected by professional fund managers, which also reduces the error in the selection of investment varieties to some extent.
Investing in various assets and industries through a package fund can involve A shares, Hong Kong stocks, bonds, currencies, etc. At the same time, this can basically solve the problem of asset allocation.
FOF funds in the market generally hold funds ranging from 10 to 15. According to statistics, holding 30 funds in a portfolio can achieve the purpose of diversifying risks. Therefore, FOF funds generally do not hold more than 30 funds, but more than 30 funds. With the increase of quantity, the effect of risk diversification will decrease obviously.
FOF funds in the market can be divided into three categories according to fund managers: the first category, fund managers are steady in style, mature in investment concept, will not chase market hotspots, stick to their own ability circle, and have excellent long-term performance. Can be configured as a core asset. Secondly, fund managers provide instrumental products, such as theme funds, and when appropriate, they can choose the right funds to suit the market style.
Third, fund managers have poor long-term performance, frequent transactions and no clear investment style, which we need to avoid in the investment process.