Case Analysis Of Asset Allocation Of Public FOF Funds In My Country

Under the background of negative interest rates,high volatility and low returns,the era of asset allocation has come quietly.Traditional single market investment can not meet the complex investment environment at this stage.Therefore,investors need to have a broad view of asset allocation and look for more return-risk ratio assets in comparison to obtain the expected return.However,it is difficult for individual investors to have the energy and ability to invest in all kinds of assets at the same time.The FOF fund can not only meet the needs of asset allocation,but also solve the problem of insufficient energy and ability of individual investors.In November 2017,the first batch of public-offered FOF funds were set up in mainland China,but the first batch of public-offered FOF funds did not have satisfactory returns.All of them lost and lost performance benchmarks,which could not meet the needs of investors with stable returns and low withdrawal of portfolios;and the fund managers had a relatively short working life.Therefore,this paper takes the performance of the first batch of public FOF funds as an example,and from a qualitative point of view,analyses the benchmark of running and losing performance and the reasons for the shorter working life.In addition,from a quantitative point of view,to find ways to achieve excess returns.Based on the framework of currency-credit asset allocation in line with China's national conditions,this paper uses the risk parity model to allocate the weight of the selected funds,and achieves good excess returns,which can bring long-term returns far better than cash returns to investors,and help to enhance the scale of fund management to form a scale effect.