With its unique advantages, FOF fund has been recognized by more and more people. In terms of scale and quantity, FOF funds occupy a very important position in the investment weights of ordinary investors. So what is the difference between it and other funds, which is a question that many investors do not understand. This tweet will explain the fee, yield, investment target, etc.
The difference between a FOF fund and other funds
1, from the perspective of handling fees, FOF is different from other funds in terms of handling fees, FOF's investment products are funds, as long as the fund has a handling fee, it cannot be avoided, so the rate is actually a secondary fee on the basis of fund fees, simply put, that is, investment FOF will pay double fees.
2, from the perspective of yield, FOF is slightly lower than other funds, because FOF in the investment fund can not all invest in equity funds, need to allocate a certain currency or bond fund, the income is not as high as the return of equity funds, especially in the bull market. Funds are long-term investment products, but the profitability of investing in equity funds will theoretically be higher than that of relatively conservative FOFs.
3. From the perspective of investment targets, the biggest difference between FOF funds and other funds lies in the difference in their investment targets. Ordinary funds take stocks, bonds and other securities as the investment target, while FOF does not directly invest in stocks, bonds or other securities, but takes the fund as the investment target, and diversifies the investment by holding multiple different funds under a entrusted account, technically reducing the risk of concentrated investment.
4, from the perspective of investment risk, investment risk is the most concerned issue for every investor, and for investment novices, in the face of hundreds of funds in the market, the difficulty and risk of personal selection are very large, resulting in difficulty in choosing. FOF is actually a fund that helps investors buy a basket of funds at a time, and effectively reduces non-systemic risks through professional secondary selection of funds.
The domestic market has developed to the present, FOF funds have also had a considerable scale, the main reason is that FOF has a significant advantage, that is, through professional solutions, by the fund manager in the fund "best of the best", without reducing the expected rate of return, reduce the volatility of the portfolio.
With a complete investment research system and professional fund research, FOF constructs a fund portfolio and smooths short-term fluctuations. Compared with individual funds, the fund portfolio can be diversified, effectively reducing non-systemic risks and controlling the volatility of portfolio returns. From this point of view, the risk-return characteristics of FOF products are clear, and it is easier for investors to choose according to their own risk preferences, which is also the charm of FOF funds.
Tibetan dollar FOF
Tibetan dollar FOF has formed a relatively perfect investment logic in this field, which has been highly affirmed by investors.
According to the risk degree of the product, tibetan dollar FOF is divided into stable FOF, balanced FOF, aggressive FOF, mainly in the stock market and commodity market to find strategies with different risk-return characteristics and low correlation to construct a portfolio and dynamically adjust the investment ratio of different assets and different strategies according to market conditions, so as to diversify risks and reduce the drawdown of FOF products.