FOF generally refers to the fund in the fund.

FoF (Fund in Fund) is a fund that invests in other investment funds. FoF does not directly invest in stocks or bonds, and its investment scope is limited to other funds. Indirectly holding securities assets such as stocks and bonds by holding other securities investment funds. It is a new type of fund that combines fund product innovation and sales channel innovation.

On the one hand, FoF binds multiple funds together, and investing in FoF is equivalent to investing in multiple funds at the same time, but the cost of individual investment is greatly reduced;

On the other hand, unlike pure sales plans such as fund supermarkets and fund bundle sales, FoF completely adopts the legal form of funds and operates according to the operation mode of funds; FoF contains the long-term investment strategy of the fund market. Like other funds, FOF is a financial instrument that can be invested for a long time.

F0f fund characteristics

1. Advantages

Reduce operating costs

Small risk

2. Deficiencies

Not easy to operate

low income

3. The risk is relatively small

Investment risk is the most concerned issue for every investor. For Xin Jimin, faced with hundreds of different funds in the market, it is difficult and risky for individuals to choose, but in order to avoid risks, they always want to buy a little of all types of funds. A senior financial planner said: FoF is actually a fund that helps investors buy a "basket of funds" at one time. Through the second screening of funds by experts, the characteristics of non-systematic risks are effectively reduced.

Choosing a single fund is risky and difficult, and FoF greatly reduces the risk of investment funds through portfolio investment. FoF locks its investors in the ranks of low-risk preferences, which also shows its stability relative to funds.

4. The rate of return is slightly lower

Although the brokers who launched FoF claim that their products are characterized by "low cost and high yield", it is impossible for FoF to fully invest in equity funds when investing in gold, and it is necessary to allocate certain currency or bond funds, and the yield is definitely not as high as that of equity funds, especially in a bull market. Professionals believe that if you have a professional vision, or have reliable investment experts around you, you should not be too cautious when the market continues to be optimistic. Funds are long-term investment products. Although this year's rate of return can't be compared with last year's, the return probability of investing in equity funds is theoretically higher than that of the relatively conservative FoF.