Fund of Funds (FoFs) that invest in overseas mutual fund (MF) schemes have been gaining popularity over the past year. Net assets under management (AUM) of the category have seen an increase of 216 per cent in a year. Robust global markets, access to leading global companies, and portfolio diversification are a few reasons for international investing being in focus.
The data from the Association of Mutual Funds in India (Amfi) shows that net AUM of FoFs investing overseas stood at Rs 24,189 crore in November, against Rs 7,642 crore a year ago.
Niranjan Avasthi, head-product marketing and digital business, Edelweiss MF,