Want expert to decide fund picks, allocation, rebalancing? Go for FoF

Remember that these funds come with a double layer of expenses

Fund-of-funds (FoFs), once largely focused on debt-plus-arbitrage strategies, are now expanding into diversified equity and hybrid categories. At least five new equity and multi-asset FoFs are set to launch soon. So, why the growing interest in this space?

 

What is a fund-of-funds? 

An FoF does not directly invest in stocks or bonds but instead allocates money to other mutual funds.

 

“Whether it’s equity, debt, international funds or even passive strategies—FoFs bring them all together under one umbrella. It gives you exposure to a wide range of ideas and themes without having to chase them individually,” says Nikunj Saraf, chief executive