Fund of Funds (FoF)

Gold Funds: Utilize the fund-of-fund approach, investing in gold ETFs without needing a demat account.

Asset Allocation Funds: Provide diversification across different schemes from various asset classes. They can be dynamic, adjusting allocations based on market valuations, or fixed, labeled as aggressive, moderate, or conservative. Multi-asset funds strategically allocate to equity, debt, gold, and cash.

Investors find a Fund Of Funds beneficial as it allows them to hold a collection of funds at once, whether in an asset-allocated basket or one requiring dynamic management in terms of asset allocation. This becomes convenient, especially with smaller sums, enabling exposure to multiple funds. Gold funds and international funds also offer advantages, as discussed earlier.

There are various advantages to investing in a Fund Of Funds –

Fund Of Funds targets various best-performing Mutual Funds in the market, each specializing in a particular asset or sector of the fund. This ensures gains through diversification, as both returns and risks are optimized due to underlying portfolio variety.

Fund Of Funds is managed by highly trained individuals with years of experience. Proper analysis and calculated market predictions made by such portfolio managers ensure high yields through intricate investment strategies.

An individual with limited financial resources can easily invest in the top Fund Of Funds available to earn higher profits. Monthly investment schemes can also be availed while choosing a Fund Of Funds to invest in.

Yes! Fund Of Funds is a good investment option for beginners looking for low-risk investment products. However, it is crucial to comprehend their functioning, taxation, and other features before considering an investment in them.