FoFs Domestic Mutual Funds

FoFs are a commonly used term for Funds for Funds. It is a type of mutual fund that generates returns by investing in other mutual funds, allowing you to enjoy the benefits of different well-performing mutual funds through a single fund. A Fund of Funds (FOF) Domestic Mutual Fund invests exclusively in Domestic Mutual Funds rather than directly buying stocks or bonds. FOF Mutual Funds generally appeal to investors seeking diversification, professional management, and tailored goals, whether it’s capital appreciation, income generation, or a blend. By holding a basket of funds, Domestic FOFs streamline portfolio construction, mitigate individual fund volatility, and offer a convenient way to participate in domestic market opportunities.

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List of FoFs Domestic Mutual Funds

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Features of FOF Domestic Mutual Funds

  1. 1. Smart Investing Strategy: A key Domestic Mutual Fund Feature is its structure. These funds don’t invest in stocks or bonds directly. Instead, they invest in a carefully selected mix of domestic mutual funds, giving you exposure to a range of strategies through one investment.
  2. 2. Moderate Risk Profile: Domestic FOF Mutual Funds often combine both equity and debt-oriented schemes. This mix helps balance growth potential with stability, making it a suitable option for investors seeking moderate risk.
  3. 3. Expense Ratio Efficiency: Thanks to economies of scale, another Domestic Mutual Fund Feature is lower overall costs. These funds often offer competitive total expense ratios compared to investing in multiple standalone funds.
  4. 4. High Liquidity: Like regular mutual funds, Domestic FOFs offer daily liquidity. This means you can buy or sell units easily without dealing with any complex procedures.

Popular FoFs Domestic Mutual Funds

  • Min SIP Investment Amt
  • ₹ ₹ 99
  • AUM (Cr.)
  • ₹ 1,475
  • 3Y Return
  • 63.59%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 124
  • 3Y Return
  • 38.55%

  • Min SIP Investment Amt
  • ₹ ₹ 99
  • AUM (Cr.)
  • ₹ 531
  • 3Y Return
  • 38.29%

  • Min SIP Investment Amt
  • ₹ ₹ 1000
  • AUM (Cr.)
  • ₹ 51
  • 3Y Return
  • 38.22%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 374
  • 3Y Return
  • 38.06%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 152
  • 3Y Return
  • 38.04%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 743
  • 3Y Return
  • 37.86%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 114
  • 3Y Return
  • 34.97%

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 100
  • 3Y Return
  • 33.43%

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 116
  • 3Y Return
  • 32.76%

FAQs

Investors should rebalance their portfolio now and then to ensure they have the right set of investments. Investors can use FoFs Domestic Funds to rebalance their portfolios. When you get into a portfolio rebalancing transaction that involves FoFs, you will not have to pay any taxes on the capital gains.

However, if you sell your investments to buy any different kind of securities, you will have to pay a capital gain tax. Hence, FoFs Domestic Funds allows you to change your portfolio without incurring an additional cost.

International FoF funds are another set of FoFs through which you can invest in securities of several global companies. Hence, you get exposure to several international companies by investing in a singular fund.

Also, the best part about International FoF funds is that you do not have to set up multiple trading accounts for investing in these securities. These investment instruments are ideal for investors looking to diversify portfolios from a global level.

A gold fund is a popular FoFs Mutual Fund where the investors invest in gold via ETFs. 99.5% of the entire amount is invested in pure gold. However, an investor needs to have a Demat account if they are interested in investing in a gold fund of funds. All golf FoFs make investments in gold via the gold ETFs.

If you are a new investor and are unsure which mutual fund to choose, you can go with a fund that provides you exposure to a set of mutual funds. FoFs Domestic Funds can be a good investment point for new investors.

Also, FoFs are great investment tools if you want to invest in any foreign securities. Most funds are created by grouping several funds from the same asset class. Hence, if an investor wants to invest in mutual funds from different asset classes, a FoFs Domestic Fund might not be the best choice.

FOF Domestic Funds typically carry moderate risk but are still subject to market movements and fund manager decisions. 
For example, if the fund manager wants to maximise the returns from the investment, then they will invest in FoFs and have more mutual funds with high NAV and risk. However, if the fund’s goal is to provide long-term steady returns, low-risk mutual funds will be a part of the FoFs Domestic Fund.

Returns from FOF Domestic Funds vary based on the performance of the underlying mutual funds. On average, they may offer moderate returns, typically in the range of 10%–15%, depending on the market and fund selection.

Yes, FOF Domestic Funds are treated as non-equity funds. Gains are added to your income and taxed according to your income tax slab, regardless of the equity component in the underlying funds.

Start with an amount that fits your budget and aligns with your financial goals. Even ₹500–₹1,000 can be a good starting point, especially for investors seeking diversification with limited capital.

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