I don't know if you have heard the saying that diligent people speculate in stocks and lazy people buy funds. Indeed, it is not so easy to ride the wind and waves in the stock market, which requires a lot of research and judgment. For non-professionals, fund investment is undoubtedly a good choice. Today, Bian Xiao will share with you the significance of FOF Fund for your reference only!
The significance of FOF fund
The biggest difference between a fund (FOF) and an open-end fund is that its investment target is a fund, while an open-end fund takes stocks, bonds and other securities as its investment target.
FOF relies on professional institutions to screen funds to help investors optimize the investment effect of funds.
When it comes to money, our first concern must be income.
According to the data, in the past two years, the performance of FOF funds is worse than that of equity funds and hybrid funds, but better than that of QDII funds and bond funds.
It is a "rogue" behavior to only look at the benefits and not the risks. In the turbulent city this year, this is an opportunity for us to have a good look at the FOF fund.
According to the data, as of April 3, 20021year, there were 184 FOF products on the market. On the whole, the FOF fund index has increased by 0. 17% this year, which is better than many indexes such as stock funds and hybrid funds.
After reading the data, we get a key point: although the yield of FOF products is slightly lower than that of equity funds and hybrid funds, FOF shows better ability to smooth risks in market fluctuations.
Reasons for choosing FOF fund
FOF is an asset allocation strategy, which can be rationally allocated among a large class of assets and invest in multiple funds at the same time, effectively reducing the fluctuation risk of a single asset, diversifying investment and pursuing stable income.
When the market environment changes, it is a difficult choice for investors, whether it is "changing with the constant" or adjusting the position fund in time.
At this time, the FOF fund showed its advantages-it was managed by a professional fund manager, who chose the fund at the right time.
If you are interested in FOF funds, you need to know the risk level of FOF segmented investment strategy before investing. Different FOF funds invest in equity assets in different proportions.
Taking the classification of wind as an example, FOF is divided into mixed FOF, target date FOF and target risk FOF. In actual investment, everyone needs to choose the suitable FOF products according to their own risk tolerance.
Advantages and disadvantages of FOF fund
superiority
1. Low operating cost. Low risk.
Disadvantaged
1. Bad operation 2. low income
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.
The yield is slightly lower.
Although the brokers who launch FoF all claim that their products are characterized by "low cost and high yield", it is impossible for FoF to invest in all stock funds, so it is necessary to allocate certain currency or bond funds, and the yield is definitely not as high as that of stock 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.
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