Research On FoF Sub Fund Selection And Asset Allocation Strategy

In recent years,the development of the financial market has been extremely changing and challenging.The stock,bond,real estate,commodity and P2 P markets have fluctuated and need to warm up.After the bull stock market in 2015 and the continuous stock market crash,and the urgent need for economic recovery,the products with sustained performance in China's capital market gradually came into public view.In 2018,China experienced depreciation in bonds and stock market,the investors needed to restore the confidence.With the new regulation of financial management been formally promulgated,the security products have been challenged unprecedentedly.With the advent of the era of big capital management,the diversification of assets has begun to rise up.As a series of policy guidelines have been issued by government regulators,FOF has been became active in the field of financial products.First of all,it is of great significance to the production of this article,because of the broad prospects of the development of FOF in China.This paper introduces the concept of FOF,chooses sub-funds to establish FOF portfolio through different models,and conducts a global,systematic and focused analysis on the asset allocation strategy of FOF portfolio,and sums up the models that can be adopted in FOF asset allocation of public funds in China.It also helps to point out the way for the future development of FOF based on the domestic reality.Secondly,China's standard securities investment funds began from closed-end funds.In the early stage of the development of securities investment funds,closed-end funds occupied an absolute advantage in the scale of assets,and gradually entered the field of investors' attention,becoming the asset allocation means of public FOF.This paper uses the model to test whether the selection of sub-funds is correct.After cleaning,sorting out,screening,modeling and analyzing of the data of public closed-end securities investment funds in China from 2007 to 2018,the top-ranking public equity funds are selected as the component funds of FOF for each model,and market tests are conducted with the out-of-sample data from January 1,2018 to December 31,2018 to determine which evaluation model is in the actual sample compared with financial markets.Finally,according to the analysis of the current market situation,this paper puts forward some suggestions on the future development of FOF in China,so as to provide policy suggestions for the domestic financial institutions to select FOF sub-funds and asset allocation strategies for investors' needs.The FOF has unique advantages in asset allocation.It can not only gain the extra income but also effectively avoid the fall of different markets,in order to maintain the stable growth of the wealth for the investors.At present,FOF have become a huge part of the fund market in the United States.At present,the proportion of domestic public FOF in the fund market is relatively small.With the gradual introduction of pension target funds,the future development of public FOF has more market prospects.