Fund of funds

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Fund of funds

A mutual fund or hedge fund that invests in other funds.

Fund of Funds

A mutual fund that invests exclusively in other mutual funds. Theoretically, funds of funds allow the investor to diversify risk even more than in a regular mutual fund without reducing return significantly. One disadvantage is the fact that most funds of funds have higher fees because shareholders have to pay fees for the funds of funds themselves and must also pay fees for the underlying funds. Funds of funds were especially popular in the 1960s.

fund of funds

An open-end investment company that invests only in the shares of other open-end investment companies. This type of mutual fund was popular during the 1960s but subsequently fell into disfavor with investors. Many analysts consider it more of a gimmick than a useful investment vehicle.

Fund of funds (FOF).

A fund of funds is a pooled investment, such as a mutual fund or a hedge fund, whose underlying investments are other funds rather than individual securities.

Despite some major differences, what all funds of funds have in common is an emphasis on diversification for its potential to reduce risk without significantly reducing return.

They're also designed to simplify the investment process by offering one-stop shopping.

Many mutual fund FOFs are asset allocation funds and typically include both stock and bond funds in a particular combination that the FOF manager has chosen to meet a specific objective. A mutual fund FOF may select all its funds from a single fund family or it may choose funds offered by different investment companies.

A hedge fund FOF, which owns stakes in other hedge funds, allows investors to commit substantially less money to gain exposure to this investment category than it would cost to invest in even one fund.

A major drawback with all funds of funds is that the fees tend to be higher than you would pay owning the underlying funds directly.

References in periodicals archive ?
Although the BCT struggled to maximize military police capabilities for the first two phases of FOF operations, the last phase showed marked improvement and innovation.
Bu 21 gozun hepsinde FOF goruntulemede subretinal depozitlere uyan bolgelerde hiperotofloresans saptandi (Resim 1).
Rheumatoid arthritis patients with and without FOF according to the FES were divided into two groups.
According to the Tax Court, Van Dusen had demonstrated a strong connection with FOF that made her expenses incident to providing services for the organization potentially deductible.
The present study is the first of its kind in the field of FOF among ambulatory individuals with paraplegia.
If the FOF really plays such an important part in the lives of men, as the O'Neil et al (1986) GRC paradigm argues, then it should be used as a viable way to also explore men's gender roles.
To assess how successful the FOF intervention was in educating parents about appropriate parenting practices, we compared the randomly assigned control group participants (n = 49) with the experimental group participants (n = 63) for whom we had posttest data.
Cihazin kizilotesi modunda gozdibi net bir sekilde odaklandiktan sonra floresein anjiyografi modunda floresein verilmeksizin FOF goruntuleri kaydedilmistir.
So far FOF, which comprises seven committee members together with pub regulars, have paid for the forge to be surveyed.
The group was officially aligned with FOF for many years but is now technically separate.
FOF is a diversified closed-end management investment company, INB is a non-diversified, closed-end management investment company, MIE is a diversified, closed-end management investment company and RNP is a non-diversified, closed-end management investment company.