Fund of Funds (FOF)
Fund of Fund is the fund which focus on investing other funds, it doesn’t invest in stock or bond directly.
A fund of funds allows investors to achieve a broad diversification and an appropriate asset allocation with investments in a variety of fund categories that are all wrapped up into one fund. FoF could be an investment vehicle that helps investors to manage their long-term financial objective.
FOF products cannot replace the other investment alternatives, however, FOF must be the important product in the financial market of China in the future.