BEIJING -- China's first index of funds of funds has been launched to form an investable fund portfolio, Xinhua learned on Tuesday.

The "Golden Bull Fund Index of 20 Equal-Weighted Equity Funds," compiled by Chinese investment consultancy Golden Bull (Beijing) under the China Securities Journal, has selected funds from the best of the domestic market.

An FOF is a favorable investment vehicle for investors, like pension funds, pursuing low risk and moderate returns, according to Golden Bull.

Historical statistics show that Golden Bull's index cumulatively increased 293.6 percent from April 30, 2006 to Sept 30, 2013, with an annual return of 20.27 percent.

Its performance far exceeded the major stock market index and similar funds in China. The downside risk of the Golden Bull index is obviously low in a falling market, and the excess return is significant in a rising market, with the best performance coming in the relatively long term.

Lin Chen, president of the board of the CSJGB, said that China's wealth management market has great potential to grow and that an increasing number of fund companies are being transformed into new wealth management institutions.

"Golden Bull" no longer simply means one good fund, but also a combination of good choices for fund investors, according to Lin, who expressed hope that the index can promote the fund industry to improve its investment ability to provide investors with better returns.