What are FoFs Domestic Funds?
FoFs are a commonly used term for Funds for Funds. It is a kind of mutual fund that earns its returns from investing in other mutual funds. FoFs have become quite popular recently as you enjoy the benefits of different well-performing mutual funds through a single fund. Different companies manage several FoFs Domestic Funds out there. You can start by investing in one of these funds to get an idea of how it works. View More
Who Should Invest in FoFs Domestic Funds?
The primary objective of creating a fund of funds is to reap the benefits of several mutual funds at once and maximize the returns. Also, portfolio diversification ensures that the fund’s risk goes down considerably. If you are someone who has a limited amount for investments and wants to make the most out of the amount available, you must invest in FoFs Domestic Funds. View More
Features of FoFs Domestic Funds
Several features of a FoFs Domestic Fund make it different from other mutual funds. Some of these features include:
Unique Investing
Unlike other mutual funds, the FoFs Domestic Funds do not invest in individual instruments. They invest in a range of mutual funds and are called a fund of funds. The fund manager combines different mutual funds with something in common to create a fund of funds. Hence, the fund is unique compared to the other mutual funds.
Diversification
As the fund earns its returns from several other mutual funds, you get a diverse set of assets as a part of your investment. Diversification starts with investments in mutual funds and goes down to the equity and debt component of those mutual funds. You will not find any mutual fund that gives you access to this degree of diversification.
The Risk Exposure
FoFs Domestic Mutual Funds come with a moderate risk as the risk reduces with the diversification of the portfolio. As the investments are made into an array of instruments, the risk gets reduced, and the fund becomes less immune to market fluctuations. Also, FoFs Domestic Funds must have a mix of equity and debt funds. Hence, the risk that comes from the equity funds gets balanced out by the stability of the debt funds.
Taxability of FoFs Domestic Funds
You must comprehend how the returns from a FoFs Domestic Funds will be taxed if you intend to invest in one. FoFs Domestic Funds are taxed as any other mutual fund. Also, a significant portion of these funds has an equity instrument. View More
Risk Involved with FoFs Domestic Funds
While the FoFs Domestic Funds come with a moderate risk, they can sometimes turn out to be risky investments. Some of the risks involved include: View More
Advantages of FoFs Domestic Funds
FoFs Domestic Funds are an ideal investment for those who have a moderate risk-taking ability. Also, it is a preferred investment for investors with a limited investment budget. There are several advantages of investing in a FoFs Domestic Mutual Fund. Some of these advantages include: View More
Who are These Funds Suited For?
FoFs Domestic Funds require a good understanding of the financial markets as one fund contains a set of mutual funds. Hence, an investor must understand the working of a mutual fund to understand how a FoFs Domestic Fund works. These investments are only suitable for investors who are looking for a diversification of their portfolio. Hence, it might not be ideal for traditional investors who are used to investing in specific securities. Also, these funds are suited for people who have: View More
Popular FoFs Domestic
- Fund Name
- Min SIP Investment Amt
- AUM (Cr.)
- 3Y Return
ICICI Pru Thematic Advantage Fund (FOF)-Dir Growth is an FoFs Domestic scheme that was launched on 04-04-13 and is currently under the management of our experienced fund manager Dharmesh Kakkad. With an impressive AUM of ₹1,244 Crores, this scheme's latest NAV is ₹164.3954 as of 26-09-23.
ICICI Pru Thematic Advantage Fund (FOF)-Dir Growth scheme has delivered a return performance of 24.1% in the last 1 year, 31.7% in the last 3 years, and an 15.5% since its launch. With a minimum SIP investment of just ₹5,000, this scheme offers a great investment opportunity for those looking to invest in FoFs Domestic funds.
- Min SIP Investment Amt
- ₹5,000
- AUM (Cr.)
- ₹1,244
- 3Y Return
- 24.1%
ICICI Pru Passive Strategy Fund (FOF) – Dir Growth is an FoFs Domestic scheme that was launched on 02-01-13 and is currently under the management of our experienced fund manager Dharmesh Kakkad. With an impressive AUM of ₹115 Crores, this scheme's latest NAV is ₹124.3326 as of 27-09-23.
ICICI Pru Passive Strategy Fund (FOF) – Dir Growth scheme has delivered a return performance of 22.4% in the last 1 year, 25% in the last 3 years, and an 12.2% since its launch. With a minimum SIP investment of just ₹5,000, this scheme offers a great investment opportunity for those looking to invest in FoFs Domestic funds.
- Min SIP Investment Amt
- ₹5,000
- AUM (Cr.)
- ₹115
- 3Y Return
- 22.4%
Aditya Birla SL FP FoF – Aggressive – Direct Growth is an FoFs Domestic scheme that was launched on 01-01-13 and is currently under the management of our experienced fund manager Vinod Narayan Bhat. With an impressive AUM of ₹176 Crores, this scheme's latest NAV is ₹43.0327 as of 26-09-23.
Aditya Birla SL FP FoF – Aggressive – Direct Growth scheme has delivered a return performance of 19.6% in the last 1 year, 20.1% in the last 3 years, and an 13.1% since its launch. With a minimum SIP investment of just ₹100, this scheme offers a great investment opportunity for those looking to invest in FoFs Domestic funds.
- Min SIP Investment Amt
- ₹100
- AUM (Cr.)
- ₹176
- 3Y Return
- 19.6%
Quantum Multi Asset Fund of Funds – Direct Growth is an FoFs Domestic scheme that was launched on 11-07-12 and is currently under the management of our experienced fund manager Chirag Mehta. With an impressive AUM of ₹53 Crores, this scheme's latest NAV is ₹27.0715 as of 27-09-23.
Quantum Multi Asset Fund of Funds – Direct Growth scheme has delivered a return performance of 12.5% in the last 1 year, 10.1% in the last 3 years, and an 9.3% since its launch. With a minimum SIP investment of just ₹500, this scheme offers a great investment opportunity for those looking to invest in FoFs Domestic funds.
- Min SIP Investment Amt
- ₹500
- AUM (Cr.)
- ₹53
- 3Y Return
- 12.5%
Aditya Birla SL Asset Allocator FoF-Dir Growth is an FoFs Domestic scheme that was launched on 01-01-13 and is currently under the management of our experienced fund manager Vinod Narayan Bhat. With an impressive AUM of ₹168 Crores, this scheme's latest NAV is ₹25.5784 as of 27-09-23.
Aditya Birla SL Asset Allocator FoF-Dir Growth scheme has delivered a return performance of 17.3% in the last 1 year, 17.1% in the last 3 years, and an 5.2% since its launch. With a minimum SIP investment of just ₹1,000, this scheme offers a great investment opportunity for those looking to invest in FoFs Domestic funds.
- Min SIP Investment Amt
- ₹1,000
- AUM (Cr.)
- ₹168
- 3Y Return
- 17.3%
ICICI Pru India Equity FOF – Direct Growth is an FoFs Domestic scheme that was launched on 25-02-20 and is currently under the management of our experienced fund manager Dharmesh Kakkad. With an impressive AUM of ₹76 Crores, this scheme's latest NAV is ₹21.4768 as of 26-09-23.
ICICI Pru India Equity FOF – Direct Growth scheme has delivered a return performance of 24.3% in the last 1 year, 31.2% in the last 3 years, and an 23.8% since its launch. With a minimum SIP investment of just ₹500, this scheme offers a great investment opportunity for those looking to invest in FoFs Domestic funds.
- Min SIP Investment Amt
- ₹500
- AUM (Cr.)
- ₹76
- 3Y Return
- 24.3%
Aditya Birla SL FP FoF – Moderate – Direct Growth is an FoFs Domestic scheme that was launched on 01-01-13 and is currently under the management of our experienced fund manager Vinod Narayan Bhat. With an impressive AUM of ₹30 Crores, this scheme's latest NAV is ₹34.3955 as of 26-09-23.
Aditya Birla SL FP FoF – Moderate – Direct Growth scheme has delivered a return performance of 16.1% in the last 1 year, 15.7% in the last 3 years, and an 10.6% since its launch. With a minimum SIP investment of just ₹100, this scheme offers a great investment opportunity for those looking to invest in FoFs Domestic funds.
- Min SIP Investment Amt
- ₹100
- AUM (Cr.)
- ₹30
- 3Y Return
- 16.1%
Motilal Oswal Multi Asset Fund – Direct Growth is an Multi Asset Allocation scheme that was launched on 04-08-20 and is currently under the management of our experienced fund manager Santosh Singh. With an impressive AUM of ₹115 Crores, this scheme's latest NAV is ₹12.8152 as of 27-09-23.
Motilal Oswal Multi Asset Fund – Direct Growth scheme has delivered a return performance of 17.6% in the last 1 year, 8.8% in the last 3 years, and an 8.2% since its launch. With a minimum SIP investment of just ₹500, this scheme offers a great investment opportunity for those looking to invest in Multi Asset Allocation funds.
- Min SIP Investment Amt
- ₹500
- AUM (Cr.)
- ₹115
- 3Y Return
- 17.6%
Aditya Birla SL FP FoF – Conservative – Direct Growth is an FoFs Domestic scheme that was launched on 01-01-13 and is currently under the management of our experienced fund manager Vinod Narayan Bhat. With an impressive AUM of ₹17 Crores, this scheme's latest NAV is ₹28.9639 as of 26-09-23.
Aditya Birla SL FP FoF – Conservative – Direct Growth scheme has delivered a return performance of 13.4% in the last 1 year, 11.9% in the last 3 years, and an 8.8% since its launch. With a minimum SIP investment of just ₹100, this scheme offers a great investment opportunity for those looking to invest in FoFs Domestic funds.
- Min SIP Investment Amt
- ₹100
- AUM (Cr.)
- ₹17
- 3Y Return
- 13.4%
Frequently Asked Questions
Are there any disadvantages of investing in FoFs Domestic Funds?
There are a few disadvantages of investing in a FoFs Domestic Fund. Unlike other mutual funds, the expense ratio on FoFs Domestic Funds is quite high. Hence, the cost of investments increases considerably.
Also, you need to pay a 1% expense ratio for all the funds that are a part of a particular FoFs Domestic Fund. Additionally, the returns from the investments in FoFs Domestic Funds are taxable in the hands of the investors. Even the long-term capital gain tax can go up to 20%.
How can investors rebalance their investments using FoFs Domestic Funds?
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.
What are International FoF funds?
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.
What is a Gold Fund of Funds?
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.
Should an investor invest in FoFs Domestic Funds?
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.