Fund of Funds (FoF)

No! Investment in a Fund Of Funds is held in the form of units, similar to regular mutual funds. Therefore, a Demat account is not required for such investment products, as it is in the case of ETFs.

No! Investors looking for exposure to diverse investing techniques and seeking diversification may find Fund Of Funds to be suitable.

Yes, if you choose the dividend option of FoF, you will get a regular dividend on your investment. This dividend will be paid from the return earned by the portfolio and the payout will occur after specified intervals. 

If you choose the multi-asset allocator Fund Of Funds, you will get exposure to debt securities as well as such funds invest in equity, debt, and other asset classes too.

The number of schemes depends on the fund manager. He can choose one scheme or multiple schemes depending on the investment objective of the portfolio.

An exit load represents a percentage of the Net Asset Value (NAV) of a fund, imposed by the managing AMC on investors when redeeming units from the mutual fund scheme. The specific exit load percentage varies between different schemes. For detailed information on scheme-specific exit loads, please refer to the Scheme Information Document (SID) and Key Information Memorandum (KIM) of the respective scheme.

The minimum investment depends on the fund that you choose. In the case of lump sum investment, the minimum can start from as low as Rs. 500. In the case of Systematic Investment Plan (SIP) options, the minimum investment can start from Rs.100. Check the minimum investment of the fund that you select for a better understanding.

The distinguishing features between Fund of Funds (FoFs), mutual funds, and ETFs can be summarized as follows:

For further details, please refer to the specific documentation and disclosures of each investment type.

Yes, FoFs provide facilities of SIP, STP and SWP to its investors.