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FOF

 What is the difference between fund of funds and mutual funds?

Fund of funds is a Mutual Fund which utilises its pool of resources to invest in various other kinds of mutual funds available in the market. Alternatively, investment in hedge funds can also be made via this Mutual Fund.
An investor with limited capital can invest in one FOF and get a diversified portfolio consisting of, for example, bonds, gold, equity, and debt. Such a portfolio combination is rarely found in the average mutual fund.
Popular Mutual Fund AMCs:
  • Popular Mutual Fund AMCs:
  • SBI Mutual Funds.
  • Mirae Asset Mutual Funds.
  • Axis Mutual Funds.
  • Aditya Bilra Mutual Funds.
  • PPFAS Mutual Funds.
  • ICICI Prudential Mutual Funds.
  • Nippon India Mutual Funds.

One major disadvantage of FOF is that investors cannot choose the mutual funds that a fund manager invests in or the investment strategy. If you don't like one fund, you have no option but to stay invested or redeem your investments if you had already invested.

There are three types of funds of the Central Government – Consolidated Fund of India (Article 266), Contingency Fund of India (Article 267) and Public Accounts of India (Article 266) mentioned in the Indian Constitution.

The biggest difference between index funds and mutual funds is that index funds invest in a specific list of securities (such as stocks of S&P 500-listed companies only), while active mutual funds invest in a changing list of securities, chosen by an investment manager.08-Dec-2022
What types of mutual funds are there? Most mutual funds fall into one of four main categories – money market funds, bond funds, stock funds, and target date funds.



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