Specialized investment funds invest in other securities the fund known as the "fund of funds" (fof, fundoffunds), it is a combination of fund product innovation and innovative fund products sales channels. In the United States, fof in the 1990s made the development very quickly, just 10 years increased by more than ten times, managed total as_set_s of up to 480 million. As China Fund Act restrictions do not allow domestic funds to invest in other funds. The introduction of new varieties of investment securities to bypass this limitation, the name of a collection of as_set_ management plans to invest more to achieve the same effect of funds.
Fund characteristics of the product itself is the expert financial management, portfolio investment to fund its portfolio of investments requires the fund manager has a very high capacity of analysis and evaluation. With the domestic fund industry, the establishment and development of major brokerage firms, fund companies and insurance companies have started their own evaluation of the Fund's study, to establish their own fund evaluation system and evaluation methods. The broker, for example, its research funds through the existing historical performance of the objective evaluation of fund managers with all aspects of qualitative research, the formation of the fund managers a comprehensive management study, the final screening, identification of outstanding fund products _select_ed their own "pool fund" and invest in its customers' funds to provide policy recommendations.
Existing fund product itself has its own associated costs, and investments in the fund portfolio as a "fund of funds" also need to profit, then the sales process is the second fee will be the case?
One broker studies believe that the "fund of funds" also reflects the Fund's innovative sales channels. The source said that as a _set_ of financial products, "fund of funds" in the purchase fund has a strong bargaining power, can often be more favorable than the cost of retail funds to fund the purchase of products. By so much tied to investment funds, the investor's cost will be greatly reduced.
"For fund companies, the 'fund of funds' there is a good thing the one hand, investors buy" fund of funds "would be equivalent to a fund to buy the product, the corresponding increase of the fund's sales on the other hand, closed _set_ of financial products a longer period, if its long-held fund products also help to maintain the stability of fund shares, fund companies to ease a headache that many of the current redemption pressure. "the researchers said.
Characteristics compared with other investments, this fund to other funds as an investment, the implementation of a dual expert management, help spread the risk.
Advantages (1) simplicity. To fund investments, simplifying the investment _select_ion process, saving investors time and effort. (2) diversity. Because the fund investments, so investors need less money to invest can be spread. (3) professional financial management. Fund trading and conversion generally determined by the fund manager.
Less than (1) investors in the fund's portfolio is less than personal control over investments in other funds, and no ability to change this distribution. (2) The tax administration is limited. To some extent, single fund holders can choose to achieve the taxable gains and losses. However, holders of fund of funds manager, but trading strategy by the Fund's control. For example: class fund managers to buy funds with higher turnover rate, will increase the cost of capital and taxes. Ling Chen |
|
|