Core Viewpoint - The resurgence of public FOFs (Fund of Funds) in the A-share market is notable, with a year-to-date return exceeding 20%, attracting attention from ordinary investors seeking to capitalize on stock market gains [1] Group 1: Performance and Growth - FOFs have seen a significant turnaround in performance, with over 95% of public FOF products reporting positive returns as of August 18, with the highest return reaching 34.28%, outperforming bank wealth management and bond funds [3] - The total scale of FOFs surpassed 165.6 billion yuan in Q2, marking a 24% increase from the beginning of the year, with some new products raising as much as 6 billion yuan [3] Group 2: Market Demand and Strategy - The sudden market interest in FOFs is driven by ordinary investors' challenges in selecting from thousands of funds, with FOFs acting as "fund buyers" that reduce risk through professional allocation [5] - FOFs have shifted their investment strategy from bond funds to equity assets, significantly reducing bond fund allocation from 79.5% to 16.7% and increasing exposure to stock funds, particularly in high-growth sectors like innovative pharmaceuticals, semiconductors, and AI [5] Group 3: Global and Strategic Diversification - Leading FOFs, such as Guofu Balanced Pension Three-Year FOF, are diversifying their investments not only in A-shares but also through QDII funds into U.S. tech stocks and Hong Kong pharmaceutical stocks, mitigating single-market risks [6] - The evolution of strategies from "fixed income+" to "equity+" allows FOFs to flexibly respond to market conditions, with target risk-type FOFs dynamically adjusting stock-bond ratios to capture returns amid volatility [7] Group 4: Channel Empowerment and User Engagement - Major platforms like China Merchants Bank and Ant Wealth are promoting FOFs as key products in their retirement planning sections, showcasing multiple FOF options [4] - Ant Wealth utilizes data-driven tools to match FOF products to users based on risk assessments, recommending conservative mixed FOFs for risk-averse users and tech-themed FOFs for more aggressive investors [10] Group 5: Investment Guidance for Ordinary Investors - Ordinary investors are advised to clarify their needs before selecting FOFs, with options ranging from conservative mixed FOFs for short-term funds to technology and healthcare-themed FOFs for those willing to accept short-term volatility [11][13] - Long-term retirement planning can be facilitated through target date FOFs, which gradually reduce equity exposure as retirement approaches, balancing long-term returns with risk control [14] Group 6: Selection Criteria for FOFs - Investors should prioritize performance stability by selecting products that have been established for over three years and rank in the top 30% annually [15] - Transparency in fees is crucial, with a recommendation to avoid products with combined management and subscription fees exceeding 1% [16] - Diversification in holdings should be assessed, ensuring that no single fund constitutes more than 20% of the top ten holdings to mitigate risk [17] Group 7: Long-term Investment Strategy - A long-term investment approach is encouraged, utilizing dollar-cost averaging to smooth out volatility by investing a fixed amount monthly [18] - Ignoring short-term fluctuations is essential, as FOFs demonstrated resilience during market downturns, with top FOFs averaging a drawdown of only 8% compared to 20% for equity funds in 2022 [19]