What is a FOF fund? What is a FOF fund?

FOF (Fund of Funds), which originally meant "the best of the best", is a type of investment that invests specifically in other investments. It does not directly invest in ** or bonds, its investment scope is limited to others, through the holding of other **investment** and indirectly hold**, bonds and other **assets, it is a combination of **product innovation and sales channel innovation of **new varieties.

It can more effectively find out the dominant varieties from a wide variety of products with uneven profitability, and help investors avoid risks and obtain returns to the greatest extent.

Advantages of FOF::

1.Lower the barrier to purchase

Due to the problem of funds, it is difficult for investors to buy all the favorite ** in the market, and buying FOF** is equivalent to buying multi**, reducing the cost of purchase.

2.Diversify risk

FOF** is screened by **manager in the market**, and can buy more than one**, relative to investors only buying.

In the case of one or two**, the investment risk is diversified.

3.Be more professional

Choose a FOF** created by a professional investment institution, and under normal circumstances, the conscientious ** manager uses the data of the professional institution to be richer and more professional, and the analysis of the product is more objective.

Deficiencies of FOF:

1.The issue of double charges

To choose FOF, on the one hand, you have to pay fees to the FOF manager; On the other hand, the FOF product implies a fee paid to the portfolio holding** during its operation. So in general, the total cost of FOF** will be higher than that of the average **.

2.Large FOFs have the potential to indirectly harm the interests of holding** investors

For example, when a larger scale of FOF funds is invested in a smaller product, the inflow and outflow of FOF funds will have an impact on the net value and income of the invested **, thereby harming the interests of the underlying ** holders.

FOF** is the meaning of ** in ** (also known as "mother**"). It is a kind of investment in other investments, and then indirectly invests in assets such as bonds and bonds through other investments. FOF is an investment objective that takes investment as the investment objective.

FOF's investment strategies include quantitative multi-strategy, hybrid multi-strategy, multi-strategy, etc., which are adapted to the different risk-return preferences of investors. In the bull market, FOF aggressive products, with the goal of flattening the bull market** index, are structured and set up different income distribution models for priority and inferior funds; For the slow bulls in the market, a market-neutral strategy is adopted, which can be divided into statistical arbitrage, multi-factor and event-driven strategies; In a high-volatility market that skyrockets, trend strategies are applied, including intraday and overnight trends, intraday reversals and hybrid strategies, etc., which have absolute returns in common.

The biggest difference between FundofFunds (FOF) and Open-ended is that Open-ended is based on the investment target, while Open-ended is based on valuable, bonds and other valuable investments. It screens the investment through professional institutions to help investors optimize the investment effect.

FOF (FundofFunds) is a type of investment that invests specifically in other investments. FOF does not directly invest in ** or bonds, its investment scope is limited to others, through holding other **investment** and indirectly holding **, bonds and other **assets, it is a combination of **product innovation and sales channel innovation of **new varieties.

U.S. FOF originated in the 70s of the last century, and initially focused on private equity** (PEFUNDS) as an investment target; In March 1985, Pioneer Group took the lead in launching the first truly public FOF product in the U.S. market. The National Market Improvement Act promulgated in 1996 in the United States abolished the restrictions on the issuance of FOF by ** companies, and promoted the development of ** company FOF into a new stage. At present, FOF in the United States exists in three major forms: FOPE that invests in private equity, FOMF (FundofMutualFunds) that invests in public offerings, and FOHF that invests in hedging.

By the end of 2014, the number of FOMF products in the United States was as high as 1,337, with a total net worth of trillion US dollars, accounting for 11% of the total net assets of the same period.

1. What is FOF**?

fof** is actually called ** in Chinese, which refers to ** as the main investment target**.

We all know that the main investment object in general is **, bonds or stocks and bonds.

FOF** is aimed at a basket**, mainly through holding **indirect investment**, bonds, commodities, overseas assets, etc.

2. What are the advantages of FOF**?

After reading the definition of FOF**, are you starting to get confused again, since it is a basket of ** combined for investment.

Why should we invest in FOF**, just select a few ** and invest together.

Having said that, for us investors, we are not professional investors after all, not to mention how good the selection is.

In terms of the number of people to manage, if you are asked to manage a basket of **, there are both multiple **** and multiple mixed **, are you sure you can manage it?

That's why there will be a ** in **, which has two major advantages:

1. Select the best of the best and carry out effective asset allocation.

Don't look at fof** just to combine multiple **, but there are more factors to consider when combining.

For example, what is the ratio of **** configuration? What is the proportion of bonds**?

At present, what should be reasonably configured needs to be carefully selected and considered.

The effective configuration of FOF** is very professional, and only by handing it over to a professional manager to manage can we get higher returns.

Ordinary investors have limited energy, knowledge, and access to information, and they simply select a few ** to combine them together, which may not be able to achieve the effect of FOF**.

2. Small risk and stable return.

The biggest advantage of FOF** is that the risk is small and the return is stable. When we invest, we all hope that the ** we invest can go up steadily, rather than jumping up and down.

FOF first diversifies risk through the allocation of bonds, and then diversifies risk by investing in a number of bonds of different types and styles.

So as to achieve the purpose of small risk and stable return.

FOF is based on ** as the investment target**.

FOF is the abbreviation of the English Fund of Fund, which literally translates as**中**. That is, the combination **.

As a kind of common **, the biggest difference between it and the general ** is the difference in its investment target. Ordinary **, bonds and other valuable ** as the investment target, while FOF does not directly invest in **, bonds or others**, but takes "**" as the investment target, and holds multiple different ** under a entrusted account, so as to diversify the investment and technically reduce the risk of concentrated investment.

Risk Disclosure] This information is for investors' reference only and does not represent the views of Huatai** and constitutes any investment advice. The market is risky, and investors need to be cautious.

The full name of FOF is: fund of funds, which is "** of **".

In other words, the FOF type is the investment.

The investment target of ordinary ** is bonds, ** and other valuable**, which are selected and managed by professional ** managers. The investment target of FOF is **, that is to say, if we ** one FOF**, it is equivalent to ** multiple ** at the same time**, or understood as **a**combination.

Since there are more types than types on the market, it is also a technical job to choose. In order to reduce the difficulty of investors to choose, the FOF type came into being, and the company will choose an excellent combination.