Internal Fund Of Funds Product Design

With the "big capital" era,Chinese fund industry began to explosive growth.The total number of public funds in the market approaching the four-thousands which is jumped to historically high level,especially there are more than one-thousand funds adopted in 2016.Due to the dramatic increase in fund financial products,the quality whether satisfy investors' needs become a new issue in recent years.In overseas financial markets,there are already adopted a type of fund called Fund of Funds.This fund selects high-quality funds from public fund markets to designed a safety investment model which is invest in another public offering fund.The main characteristic of the FOF is the large class of asset allocation.The different economic cycle configuration of different types of assets,fund managers once determine the main assets which distribution to invest,the total investment risk will reduce by combination investment portfolio and selection sub-fund.Therefore,FOF fund managers focus more on allocate assets and select the high quality fund rather than analyze their portfolio fund managers' investment activities.Due to the lack of the relevant regulation and supervisory,FOF public offering fund has not been established.However,the China Securities Regulatory Commission announced and adopted the implementation of the “public offering of securities investment fund operation guidelines No.2” in 23 rd September 2016,which is currently instruction Chinese public offering FOF,the relevant laws and regulations based on the actual situation of domestic capital market.In this paper,the structure is clearly organized as follows.The first chapter composing of mainly elaborates the background of the design of FOF fund products,and classifies the products from the managers and the target of investment,to briefly introduces the five processes of FOF fund design and distribution: product positioning,strategy setting,product distribution,product operation and late-sale support.Moreover,compared the FOF fund in the domestic markets and foreign markets respectively and introduced the possible innovation and limitations of the research.The second chapter is the content of product design.Firstly,analysis fund companies,investment advisers and investment groups.According to the actual situation of domestic markets and the reasonable rate of fund companies,to briefly described the basic provisions of FOF fund products.The second part is the setting of the strategy,which is divided into large-scale asset investment strategy and sub-fund investment strategy.Meanwhile,the capital investment strategy of subordinate assets is based on the Morningstar fund rating system.The third chapter mainly elaborates the significance of FOF fund development to our fund firms,and analyzes the obstacles that FOF fund may encounter in domestic investment markets development and puts forward countermeasures.The fourth chapter describes the channel framework of current fund sales in domestic fund markets as well as analysis the sales rate in recent years.The fifth chapter is the summary.