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What is a
Fund Of Funds?

A Fund Of Funds (FoFs) is like a mutual fund that invests in other mutual funds. It helps investors diversify by spreading their money across various funds for better risk management.

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Advantages of Fund Of Funds

Easy diversification

FoFs spread your money across different Mutual Fund rather than investing directly in stocks, bonds, gold, etc. for diversifying your portfolio.

All-in-one solution

Instead of managing many funds, choose FoFs and invest in multiple mutual funds. Save time and effort without compromising on growth.

International exposure

With a Fund of Funds, you can invest in international markets as many funds invest in foreign mutual funds.

Types Of Debt Funds

Our Life Insurance Plans

Aditya Birla Sun Life Medium Term Direct Plan Growth

  • Direct-Growth
  • Debt

Value Research Rating:

  • AUMAUM: 23427(Cr)
  • RISKRisk: Very High
  • MIN. INVESTMENT 500
  • 5 YRS RETURNS 33.32%
  • Invest (Per Month) ₹10000
  • Get (30 Yrs) ₹24,850*

*Projections/estimations is backtested using historical data.

Our Life Insurance Plans

Aditya Birla Sun Life Long Term Direct Plan Growth

  • Direct-Growth
  • Life

Value Research Rating:

  • AUMAUM: 23427(Cr)
  • RISKRisk: High
  • MIN. INVESTMENT 1000
  • 5 YRS RETURNS 33.32%
  • Invest (Per Month) ₹15000
  • Get (30 Yrs) ₹34,850*

*Projections/estimations is backtested using historical data.

Our Life Insurance Plans

Aditya Birla Sun Life Medium Term Direct Plan Growth

  • Direct-Growth
  • Debt

Value Research Rating:

  • AUMAUM: 23427(Cr)
  • RISKRisk: Very High
  • MIN. INVESTMENT 500
  • 5 YRS RETURNS 33.32%
  • Invest (Per Month) ₹10000
  • Get (30 Yrs) ₹24,850*

*Projections/estimations is backtested using historical data.

Our Life Insurance Plans

Aditya Birla Sun Life Long Term Direct Plan Growth

  • Direct-Growth
  • Life

Value Research Rating:

  • AUMAUM: 23427(Cr)
  • RISKRisk: High
  • MIN. INVESTMENT 1000
  • 5 YRS RETURNS 33.32%
  • Invest (Per Month) ₹15000
  • Get (30 Yrs) ₹34,850*

*Projections/estimations is backtested using historical data.

Our Life Insurance Plans

Aditya Birla Sun Life Medium Term Direct Plan Growth

  • Direct-Growth
  • Debt

Value Research Rating:

  • AUMAUM: 23427(Cr)
  • RISKRisk: Very High
  • MIN. INVESTMENT 500
  • 5 YRS RETURNS 33.32%
  • Invest (Per Month) ₹10000
  • Get (30 Yrs) ₹24,850*

*Projections/estimations is backtested using historical data.

Our Life Insurance Plans

Aditya Birla Sun Life Long Term Direct Plan Growth

  • Direct-Growth
  • Life

Value Research Rating:

  • AUMAUM: 23427(Cr)
  • RISKRisk: High
  • MIN. INVESTMENT 1000
  • 5 YRS RETURNS 33.32%
  • Invest (Per Month) ₹15000
  • Get (30 Yrs) ₹34,850*

*Projections/estimations is backtested using historical data.

Our Life Insurance Plans

Aditya Birla Sun Life Medium Term Direct Plan Growth

  • Direct-Growth
  • Debt

Value Research Rating:

  • AUMAUM: 23427(Cr)
  • RISKRisk: Very High
  • MIN. INVESTMENT 500
  • 5 YRS RETURNS 33.32%
  • Invest (Per Month) ₹10000
  • Get (30 Yrs) ₹24,850*

*Projections/estimations is backtested using historical data.

Our Life Insurance Plans

Aditya Birla Sun Life Long Term Direct Plan Growth

  • Direct-Growth
  • Life

Value Research Rating:

  • AUMAUM: 23427(Cr)
  • RISKRisk: High
  • MIN. INVESTMENT 1000
  • 5 YRS RETURNS 33.32%
  • Invest (Per Month) ₹15000
  • Get (30 Yrs) ₹34,850*

*Projections/estimations is backtested using historical data.

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Customer Satisfaction Stories

Feedback from the voices that drive innovation, inspiration and dedication - our customers

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Mr. Mohammad Moosa Azmi

Aditya Birla Home Finance

1 Jan 1
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My trading experience with ABM has been very fruitful. I have always been receiving excellent support from my dealer. Moreover, the transparent business practices at ABM makes it the preferred broker in the industry.

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Mrs. Priyanka Sharma

Aditya Birla Money Customer

Mumbai

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Mr. Sandip Prajapati

Aditya Birla Sun Life Insurance Customer

1 Jan 1
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Aditya Birla Health Insurance has been my companion in my weight loss journey of losing 17 Kgs and helping me stay disease-free. Health Returns keeps my whole family motivated to be active and stay fit and each person can do the exercise of their choice

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Aditya Birla Health Insurance Customer

Delhi

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Mrs. Kavita Nilesh Chordiya

Aditya Birla Health Insurance Customer

1 Jan 1
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Due to seamless branch support and timely communication from ABSLI, my maturity payout process was quite smooth.

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Mr. Bansal

Aditya Birla Sun Life Insurance Customer

Haryana

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Mr. Vivek Mishra

Aditya Birla Sun Life Pension Management Customer

1 Jan 1
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The digital platform and whatsapp service of ABHFL gives me a quick access to my basic loan details such as statement of accounts, loan account details, interest certificate, and repayment schedule.

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Mr. Arpit Jain

Aditya Birla Housing Finance Customer

Gurgaon

Understanding Fund of Funds
  • What are Fund Of Funds?
  • What are the features of Fund Of Funds?
  • What are the different types of Fund Of Funds?
  • Who should invest in Fund of funds?
  • What is the tax implication of Fund of Funds?
  • What are some drawbacks of Fund Of Funds?

What are Fund Of Funds?

Fund Of Funds are mutual fund schemes which invest in other mutual fund schemes to give you better diversification and exposure to different types of asset classes. There are different types of Fund Of Funds which you can choose from based on your investment strategy.

What are the features of Fund Of Funds?

  • Invests in one or more mutual funds.

  • FoFs can invest in different asset classes by choosing different funds.

  • International and gold investments can be done through FoFs.

  • Different types of schemes for different investor preference.

  • Easy liquidity without any lock-in period

What are the different types of Fund Of Funds?

img Multi-asset or asset allocator FoFs

Invest across different asset classes.

img International FoFs

Invest in international mutual fund schemes.

img ETF-based FoFs

Invest in different types of ETFs.

img Gold FoFs

Invest in gold ETFs.

Who should invest in Fund of funds?

  • New investors who lack the expertise of managing their portfolios.

  • Investors with smaller capital but looking to invest in multiple mutual fund schemes.

  • Investors who want portfolio diversification.

Who should buy a Savings Plan?

img Equity-oriented funds

If a FoF invests at least 90% of its portfolio in equity funds which, in turn, invest a minimum of 90% of their portfolio in equity, the FoF would be considered as an equity-oriented fund.

• Returns earned within 12 months of investment would attract short-term capital gains tax of 15%
• Returns earned after 12 months of investment would be tax-free up to Rs.1 lakh
• Returns exceeding Rs.1 lakh are taxed at 10%


img Debt-oriented funds

All other FoFs would be treated as debt funds for taxation purposes.

• Returns earned would be taxed at your income tax slab rates


img Dividend income is taxed at your income tax slab rates

What are some drawbacks of Fund Of Funds?

  • You don’t control the choice of mutual funds into which the portfolio invests

  • There is a possibility of the portfolio being duplicated

  • The expense ratio is on the higher side

LI Retirement Plan

Secure retirement with Life Insurance

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ULIP

Invest and secure with ULIPs

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    Flexibility: withdraw, switch, top up

FAQs On Fund of Funds

A Fund Of Funds (FOF) is a mutual fund that units of other mutual fund schemes. FOFs may invest in domestic mutual funds or extend their portfolio to include international funds. These funds might allocate their investments across distinct schemes in equity, debt, or gold categories, or follow an asset allocation strategy involving a combination of equity, debt, and occasionally gold. If a Fund Of Funds invests in a foreign fund, it transforms into an international fund.

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.

International Fund Of Funds: Invest in existing foreign funds, allowing Indian investors access to foreign equity funds. They carry market risk in the targeted country or theme and currency risk due to conversion volatility during fund deployment in foreign markets.


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.

Other asset class funds

image

Debt Funds

Invest in debt securities for low risks and stable returns.

Know More
image

ETF Funds

Invest in funds listed and traded on the stock exchange

Know More
ulip

Hybrid Funds

Get a mix of equity, debt and other asset classes for a diversified portfolio

Know More
ulip

Index Fund

Passively-managed mutual funds tracking a particular index

Know More

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