What's the difference between sunshine private placement and general private placement? What's the difference between a contractual fund and a trust?
Funds in funds:
The fund in the fund, referred to as FOF, is a kind of fund that invests in other funds. The biggest difference with open-end funds is that other funds aim at investing in stocks, bonds and other securities. It screens funds through professional institutions to help investors optimize the investment effect of funds.
Umbrella fund:
Umbrella fund refers to the fund operation mode of setting up several sub-funds under a parent fund, and each sub-fund makes independent investment decisions.
Features:
Low management fees charged: As all the sub-funds under the umbrella fund operate under the same management framework, it can highlight the characteristics of large scale, complete varieties and unified management of the fund, so that the umbrella fund can enjoy economies of scale in custody, audit, legal services and management fees, reduce management costs and broaden the downward space for the fund to collect management fees.
Investors can easily switch between sub-funds under umbrella funds: umbrella funds can provide investors with a variety of investment options, and investors can easily choose and switch different sub-funds according to changes in market conditions.
The conversion cost between sub-funds is low. The conversion between single funds usually takes at least one week from applying for "endorsement" on the unit warrant to receiving the redemption money, and it takes a considerable initial subscription fee to convert into a new fund; Investors of umbrella funds can switch fund types at any time according to their own needs, with short time and low switching cost.
Umbrella fund structure:
First of all, it can meet the requirements of different investors in investment purposes, investment targets, investment fields and investment directions, and can attract many investors with different investment preferences more widely under the same brand.
Secondly, umbrella funds allow investors to freely switch between multiple fund products according to changing market conditions and investment preferences, and only need to pay a fairly low fee or even no cost when switching. In addition, umbrella funds can not only highlight the characteristics of large scale, complete varieties and unified management, but also enhance the trust of fund investors in fund brands, which is also conducive to giving play to the advantages of economies of scale and reducing management costs.
Finally, the umbrella fund also has a powerful expansion function, which can continuously innovate new varieties of sub-funds with higher efficiency and lower cost than a single fund according to market demand.