Fund Of Funds

Invests in other mutual funds

List of Fund Of Funds (69 Funds).

About

Fund of Funds (FoF) are a type of mutual fund which does not invest in stocks or bonds. Instead, it invests in other mutual funds or investment funds. This helps investors get diversified exposure through a single investment.

What are Fund of Funds?

A Fund of Fund is an investment product that pools money invested by various investors and allocates the money into other mutual funds rather than purchasing stocks, bonds, or any other form of security. This structure allows investors to get instant diversification across different asset classes such as equity, debt, gold, or international markets through a single investment.

The main idea is to simplify investing by letting professional fund managers choose and manage a mix of underlying funds on your behalf. FoFs are useful for investors who want broad market exposure without the need to research or manage multiple individual funds themselves.

Features of Fund of Funds

Diversification: Your money is invested in many other funds and assets, thus reducing risks. Expert Management: The funds will be carefully chosen and managed by experienced fund managers. Convenience: There is no need for you to choose several funds because FoF offers you an entire portfolio of diversified funds. International Investment: Some FoFs invest in international funds, thus allowing you to tap into the global market environment. Distribution Risks: As your funds are distributed among several other funds, any losses incurred from one area do not affect the whole portfolio.

How to Invest in a Fund of Funds?

You can invest in fund of funds by following simple process:

Step 1: Choose investment mode. You can invest through:

AMC websites
Online investment platforms provided by stockbrokers
Mutual fund distributors

Step 2: Choose a suitable fund of funds.

Step 3: Choose between Systematic Investment Plan (SIP) and Lump sum based on your goal and make investment.

Step 4: Make payment through UPI, netbanking or other available methods.

Why to Invest in Fund of Funds?

Simple Diversification: FoFs allows you to access several mutual funds within one product, saving time and effort in investment management.
Balanced Exposure: Assists you in structuring your investments in various markets and classes of assets.
Expert Handling: Mutual fund managers keep a watch on investments and make necessary adjustments all the time.
Good for Beginners: A convenient starting point for new investors who want diversified exposure with less complexity.

Taxation of Fund of Funds

FoF Type	Holding Period	Capital Gain Type	Current Tax Rate
Equity-Oriented Fund<br>(Direct Equity, Equity FoFs, Arbitrage Funds)	Less than 12 months	Short Term Capital Gain (STCG)	20%
	12 months or more	Long Term Capital Gain (LTCG)	12.5% (Exemption up to ₹1.25 lakh/year for aggregate equity LTCG)
Other than Equity-Oriented<br>(Gold Funds/ETFs, Multi-Asset Funds with 35%–65% equity, International FoFs)	Less than 24 months	STCG	Regular Tax Slab Rates
	24 months or more	LTCG	12.5% (Without Indexation)
Specified Debt Mutual Fund / Debt FoF<br>(Invests <35% in domestic equities; acquired on or after April 1, 2023)	Any Duration	STCG (Deemed)	Regular Tax Slab Rates (No LTCG benefit or lower tax rate applies)