By UNIQUE BUSINESS IDEAS
Fund of funds is an investment strategy that invests in ETF (Exchange traded funds), mutual funds, and hedge funds.
It is a diversified investment, the investment gets split among diversified portfolios and in different asset classes. Fund of Funds reduces the risk level to a high extent.
Good for the small investor as they can invest in the most diversified portfolio through a single asset.
In other words, rather than investing in a single mutual fund when one invests in a group of mutual funds created by a fund of funds company. A pooled fund that invests in other funds.
Types of funds of funds.
It can be different types basis the objective. Asset allocation fund Gold fund International fund of fund Multi manager fund of funds
ICICI Prudential Advisor Series - Conservative Fund. ICICI Prudential Advisor Series - Hybrid Fund. Kotak Asset Allocator Fund. IDFC All Seasons Bond Fund.