What Is a Replicating Portfolio?

The cloned fund portfolio is the duplication of fund portfolios. Fund duplication is based on the performance of a good fund product as the target fund, issuing another product, imitating and duplicating the product of the target fund, while reducing product development costs and research investment while obtaining and targeting Fund products have basically the same returns, enabling investors to enjoy the same investment and financial management services as the original funds at a lower net worth level.

Clone Fund Portfolio

Right!

Cloning a fund portfolio is a copy of the fund portfolio,

The significance of copying funds lies in creatively solving the difficulties of investors through financial innovation and satisfying them.

Because of the long-term and successful operation experience of the replication fund, its product characteristics were proven by the parent fund before entering the market. The investment portfolio and investment object selected when the position was established are already mature, so investors can be given relatively clear expectations. , Reduce the difficulty of selection.

The disadvantage is that in addition to complying with the constraints of the fund contract, there must be a mother's "shadow" everywhere, which makes it impossible to operate so flexibly.

The new fund is just the other way round. It does not have the original parent to restrict it. It can operate according to its own fund contract and has a greater degree of flexibility. Accordingly, the new fund's operating philosophy and performance must be explored by itself.

The new fund has an annual mortality rate of 15%. The replication fund has the long-term and successful operation experience, but the situation is the opposite. Therefore, mature investors are more willing to invest in the replication fund. They can have relatively clear expectations, reduce the difficulty of selection, and reduce the return risk.

Fund portfolio is to buy a variety of different styles and different types of funds, both to diversify risks and enjoy the benefits of each fund.