svg

Wednesday, May 13, 2020

What is fund of fund in Mutual Fund ?

Today we will explain what is fund of fund in Mutual Fund parlance. Many a times your would have come to notice this term and you may be inquisitive to know the meaning of the same.

A Fund-of-Fund is basically a Mutual Fund that invests in other mutual fund schemes or ETF ( Exchange Traded Funds ).

So Meaning of Fund of Fund in simple language is " A Mutual Fund investing in series of other existing Mutual Funds ".

Here in our country FOF short form of Fund of Fund are used to invest in ETFs including those that invest in Gold and Equity indices.

Also there are funds of funds which that invest in units of international funds which in turn invest in units of global funds.

Total expenses is capped to 2% by SEBI ( Securities and Exchange Board of India ) a statutory body which monitors capital market and mutual funds in India.

1 comment:

Phani Kumar said...

Thanks, This post is good. Your posts are helpful and provide valuable information. CBC Pharma IPO .

Total Pageviews