Fund of Funds ( FundofFunds , referred to as “FOF”) refers to funds that invest in other funds. The portfolio is usually a series of direct investment funds (such as private equity funds ) rather than direct investment in shares, bonds or other securities.
- If it is classified according to the investment target.
According to the fourth and fifth specifications of Article 30 of the “Operation and Operation Management Measures”, FOF can be subdivided into two sub-categories: pure FOF and non-pure FOF. Pure FOF only buys funds or invests in funds with a proportion of not less than 80% of the fund assets. Then, a small proportion of the excess funds, that is, those less than 15% of the funds, can buy other types of securities in a small proportion, such as stocks and bonds. , this part of the FOF, we may call it secondary FOF. Non-pure FOF means that funds, stocks, and bonds can be bought. The allocation ratio of major types of assets is completely stipulated by the fund contract, that is, the future hybrid fund can include funds in its investment target.
- According to the attribution of the invested funds.
FOF can be subdivided into three sub-categories: internal FOF, external FOF, and mixed FOF. Internal FOF, as the name suggests, only buys funds from your own company; external FOF, as the name suggests, of course, only buys funds from other fund companies; hybrid FOF means you, me, or him, as long as it is a suitable fund, you can buy it.
- According to the different types of funds invested .
FOF can be subdivided into stock FOF, bond FOF, currency FOF, hybrid FOF, index fund FOF, QDII -FOF, and so on. No less than 80% of the fund assets of the stock FOF investment target will be invested in the stock fund; no less than 80% of the fund assets of the bond FOF investment target will be invested in the bond fund ; currency FOF investment target will have No less than 80% of the fund assets will be invested in currency funds ; no less than 80% of the fund assets will be invested in index funds in the investment target of index FOF; no less than 80% of the fund will be invested in the target of QDII-FOF Assets are invested in QDII funds ; no less than 80% of the fund assets in the investment target of hybrid FOF will be invested in hybrid funds, or various funds can be invested.