Study on Portfolio Strategy of FOF Funds

Abstract

FOF, as an emerging financial model, diversifies fund products and gives investors a new investment experience. This paper analyzes the following aspects: Firstly, it gives an overview of the investment status of FOF funds at domestic and overseas; secondly, it introduces the development history and status of domestic FOF funds; then, it elaborates on the characteristics and mode of operation for FOF funds; finally, it puts forward the management principles of FOF funds and analyzes the advantages and disadvantages of FOF funds with empirical data. Moreover, the study above shows that China is still lagging behind in the development of FOF funds. However, with the continuous opening of the financial market, more and more foreign investors are entering our market. Therefore, it is necessary to strengthen the understanding of FOF funds, actively explore new investment models and improve our own investment level.