What is Fund of Funds

Fund of funds is a mutual fund in which the investment strategy is to invest in other mutual funds schemes rather than investing directly into stocks. It can be better understood with a real life example suppose a group of 10 friends decide to go for a movie, than instead of each of them buying movie ticket they all give money to one of them so that he or she can buy on behalf of them. Similarly is the case of fund of funds which in simple words is an indirect investment into the stock markets as it invests into other mutual funds which are investing into the stock markets.

0 comments… add one

Leave a Comment