URL copied to clipboard
Best Fund Of Funds English

5 min read

Fund Of Funds – Best Fund Of Funds

Table of Contents

The below table shows a list Of the Fund Of Funds – Best Fund Of Funds Based on AUM, NAV, and minimum SIP.

NameAUM (Cr)NAV (Rs)Minimum SIP (Rs)
BHARAT Bond FOF – April 20306796.3113.85100
Motilal Oswal Nasdaq 100 FOF4844.8234.076000
Franklin India Feeder – Franklin U.S. Opportunities Fund3433.0075.99100
Kotak NASDAQ 100 FoF3227.7416.81100
Edelweiss US Technology Equity FOF2337.1324.32100
HDFC Gold Fund2071.9022.75100
SBI Gold1878.6722.245000
Nippon India Gold Savings Fund1848.2829.125000
ICICI Pru Thematic Advantage Fund1746.93223.395000
Mirae Asset NYSE FANG ETF FoF1510.9720.41100

Introduction to  FoF Mutual Fund

BHARAT Bond FOF – April 2030

BHARAT Bond FOF is a Debt FoF mutual fund scheme from Edelweiss Mutual Fund, operating for 4 years and 8 months since its launch on 13/12/2019. 

Mutual Fund Name: BHARAT Bond FOF, Category: FoFs (Domestic) – Debt Oriented, AUM: ₹6,796.31 Crores, 5-Year CAGR: N/A, Exit Load: 0.1%, Expense Ratio: 0.06%, SEBI Risk Category: Moderate. The asset allocation includes Cash & Equivalents at 0.08% and Mutual Funds at 99.92%.

Alice Blue Image

Motilal Oswal Nasdaq 100 FOF

Motilal Oswal Nasdaq 100 FOF is an international mutual fund scheme from Motilal Oswal Mutual Fund, in existence for 5 years and 9 months since 09/11/2018.

Mutual Fund Name: Motilal Oswal Nasdaq 100 FOF, Category: FoFs (Overseas), AUM: ₹4,844.82 Crores, 5-Year CAGR: 23.61%, Exit Load: 0%, Expense Ratio: 0.24%, SEBI Risk Category: Very High. The asset allocation includes Cash & Equivalents at 0.50% and Mutual Funds at 99.50%.

Franklin India Feeder Franklin US Opportunities Fund

Franklin India Feeder Franklin US Opportunities Fund is an international mutual fund scheme from Franklin Templeton Mutual Fund, operating for 11 years and 8 months since 01/01/2013.

Mutual Fund Name: Franklin India Feeder – Franklin US Opportunities Fund, Category: FoFs (Overseas), AUM: ₹3,433 Crores, 5-Year CAGR: 16.57%, Exit Load: 1%, Expense Ratio: 0.58%, SEBI Risk Category: Very High. The asset allocation includes Cash & Equivalents at 0.84% and Mutual Funds at 99.16%.

Kotak Nasdaq 100 FOF

Kotak Nasdaq 100 FOF is an international mutual fund scheme from Kotak Mahindra Mutual Fund, active for 3 years and 7 months since 11/01/2021.

Mutual Fund Name: Kotak NASDAQ 100 FOF, Category: FoFs (Overseas), AUM: ₹3,227.74 Crores, 5-Year CAGR: N/A, Exit Load: 0%, Expense Ratio: 0.3%, SEBI Risk Category: Very High. The asset allocation includes Cash & Equivalents at 0.12% and Mutual Funds at 99.88%.

Edelweiss US Technology Equity FOF

Edelweiss US Technology Equity FOF is an international mutual fund scheme from Edelweiss Mutual Fund, operating for 4 years and 6 months since 14/02/2020.

Mutual Fund Name: Edelweiss US Technology Equity FOF, Category: FoFs (Overseas), AUM: ₹2,337.13 Crores, 5-Year CAGR: N/A, Exit Load: 1%, Expense Ratio: 1.41%, SEBI Risk Category: Very High. The asset allocation includes Cash & Equivalents at 0.04% and Mutual Funds at 99.96%.

HDFC Gold Fund

HDFC Gold Fund is a Gold/Precious Metals mutual fund scheme from HDFC Mutual Fund, operating for 11 years and 8 months since 01/01/2013.

Mutual Fund Name: HDFC Gold Fund, Category: FoFs – Gold, AUM: ₹2,071.90 Crores, 5-Year CAGR: 12.73%, Exit Load: 1%, Expense Ratio: 0.18%, SEBI Risk Category: Very High. The asset allocation includes Cash & Equivalents at -0.28% and Mutual Funds at 100.28%.

SBI Gold Fund

SBI Gold Fund is a Gold/Precious Metals mutual fund scheme from SBI Mutual Fund, operating for 11 years and 8 months since 01/01/2013.

Mutual Fund Name: SBI Gold, Category: FoFs – Gold, AUM: ₹1,878.67 Crores, 5-Year CAGR: 12.86%, Exit Load: 1%, Expense Ratio: 0.1%, SEBI Risk Category: High. The asset allocation includes Cash & Equivalents at 0.04% and Mutual Funds at 99.96%.

Nippon India Gold Savings Fund

Nippon India Gold Savings Fund is a Gold/Precious Metals mutual fund scheme from Nippon India Mutual Fund, operating for 11 years and 8 months since 01/01/2013.

Mutual Fund Name: Nippon India Gold Savings Fund, Category: FoFs – Gold, AUM: ₹1,848.28 Crores, 5-Year CAGR: 12.64%, Exit Load: 1%, Expense Ratio: 0.14%, SEBI Risk Category: High. The asset allocation includes Cash & Equivalents at 0.04% and Mutual Funds at 99.96%.

ICICI Prudential Thematic Advantage Fund

ICICI Prudential Thematic Advantage Fund is an equity FoF mutual fund scheme from ICICI Prudential Mutual Fund, operating for 11 years and 8 months since 01/01/2013.

Mutual Fund Name: ICICI Pru Thematic Advantage Fund, Category: FoFs (Domestic) – Equity Oriented, AUM: ₹1,746.93 Crores, 5-Year CAGR: 27.87%, Exit Load: 1%, Expense Ratio: 0.44%, SEBI Risk Category: Very High. The asset allocation includes Cash & Equivalents at 2.66% and Mutual Funds at 97.34%.

Mirae Asset NYSE FANG ETF FoF

Mirae Asset NYSE FANG ETF FoF is an international mutual fund scheme from Mirae Asset Mutual Fund, operating for 3 years and 4 months since 19/04/2021.

Mutual Fund Name: Mirae Asset NYSE FANG ETF FoF, Category: FoFs (Overseas), AUM: ₹1,510.97 Crores, 5-Year CAGR: N/A, Exit Load: 0.5%, Expense Ratio: 0.05%, SEBI Risk Category: Very High. The asset allocation includes Cash & Equivalents at 0.02% and Mutual Funds at 99.98%.

What Is A Fund Of Funds?

A Fund of Funds (FoF) is a mutual fund that invests in other mutual funds rather than directly in stocks, bonds, or other securities. This investment strategy aims to achieve greater diversification and professional management by spreading investments across multiple funds with different strategies and asset classes.

FoFs can provide access to a wide range of investment styles and asset classes through a single investment. They can be particularly useful for investors who want broad diversification but lack the time or expertise to select and manage multiple individual funds.

However, FoFs may have higher expense ratios due to the layered fee structure, as investors pay fees for both the FoF and the underlying funds. It’s important to consider these costs when evaluating the potential benefits of a Fund of Funds.

Features of the Best Fund Of Funds Mutual Fund India

The main features of the best Fund of Funds Mutual Funds in India include extensive diversification, professional fund selection, access to specialized strategies, and simplified portfolio management. These funds offer a unique opportunity to invest in a variety of mutual funds through a single investment vehicle.

  • Diversification: FoFs provide broad diversification across multiple funds, asset classes, and investment strategies. This can help spread risk and potentially smooth out returns over time.
  • Professional fund selection: FoF managers are responsible for selecting and monitoring the underlying funds. Their expertise in fund evaluation can be valuable for investors who lack the time or knowledge to do so.
  • Access to specialized strategies: FoFs can provide access to funds or strategies that might be difficult for individual investors to access directly. This can include international funds or specialized sector-specific funds.
  • Simplified portfolio management: By investing in a FoF, investors can gain exposure to multiple funds through a single investment. This simplifies portfolio management and reduces administrative burden.

Top Fund Of Funds Funds Based on Expense Ratio

The table below shows the Top Fund Of Funds, Funds Based on the lowest to highest expense ratio.

NameExpense Ratio (%)Minimum SIP (Rs)
Mirae Asset NYSE FANG ETF FoF0.05100
BHARAT Bond FOF – April 20300.06100
SBI Gold0.15000
Nippon India Gold Savings Fund0.145000
HDFC Gold Fund0.18100
Motilal Oswal Nasdaq 100 FOF0.246000
Kotak NASDAQ 100 FoF0.3100
ICICI Pru Thematic Advantage Fund0.445000
Franklin India Feeder – Franklin U.S. Opportunities Fund0.58100
Edelweiss US Technology Equity FOF1.41100

Best Fund Of Funds Mutual Funds Based on 3Y CAGR

The table below shows the Best Fund Of Funds Mutual Funds Based on the Highest 3Y CAGR.

NameCAGR 3Y (Cr)Minimum SIP (Rs)
Mirae Asset NYSE FANG ETF FoF23.39100
ICICI Pru Thematic Advantage Fund22.645000
Kotak NASDAQ 100 FoF14.01100
SBI Gold13.855000
HDFC Gold Fund13.76100
Nippon India Gold Savings Fund13.535000
Motilal Oswal Nasdaq 100 FOF12.716000
Edelweiss US Technology Equity FOF8.44100
Franklin India Feeder – Franklin U.S. Opportunities Fund6.06100
BHARAT Bond FOF – April 20306.05100

Best Fund Of Funds In India Based on Exit Load

The table below shows the Best Fund Of Funds In India Based on Exit Load, i.e., the fee that the AMC charges investors when they exit or redeem their fund units.

NameAMCExit Load (%)
Kotak NASDAQ 100 FoFKotak Mahindra Asset Management Company Limited0
Motilal Oswal Nasdaq 100 FOFMotilal Oswal Asset Management Company Limited0
BHARAT Bond FOF – April 2030Edelweiss Asset Management Limited0.1
Mirae Asset NYSE FANG ETF FoFMirae Asset Investment Managers (India) Private Limited0.5
ICICI Pru Thematic Advantage FundICICI Prudential Asset Management Company Limited1
Franklin India Feeder – Franklin U.S. Opportunities FundFranklin Templeton Asset Management (India) Private Limited1
Edelweiss US Technology Equity FOFEdelweiss Asset Management Limited1
HDFC Gold FundHDFC Asset Management Company Limited1
Nippon India Gold Savings FundNippon Life India Asset Management Limited1
SBI GoldSBI Funds Management Limited1

Fund Of Funds Mutual Funds Returns

The table below shows Fund Of Funds Mutual Funds Returns based on 1Y return

NameAbsolute Returns – 1Y (%)Minimum SIP (Rs)
Mirae Asset NYSE FANG ETF FoF55.08100
ICICI Pru Thematic Advantage Fund38.545000
Franklin India Feeder – Franklin U.S. Opportunities Fund34.99100
Edelweiss US Technology Equity FOF34.33100
Kotak NASDAQ 100 FoF33.14100
Motilal Oswal Nasdaq 100 FOF32.246000
HDFC Gold Fund20.81100
Nippon India Gold Savings Fund20.805000
SBI Gold20.705000
BHARAT Bond FOF – April 20307.99100

Historical Performance of Fund Funds

The table below shows the Historical Performance of Fund Funds Based on 5Y return

NameCAGR 5Y (Cr)Minimum SIP (Rs)
ICICI Pru Thematic Advantage Fund27.875000
Motilal Oswal Nasdaq 100 FOF23.616000
Franklin India Feeder – Franklin U.S. Opportunities Fund16.57100
SBI Gold12.865000
HDFC Gold Fund12.73100
Nippon India Gold Savings Fund12.645000

Factors to Consider When Investing in Fund Of Funds Mutual Funds

When investing in a Fund of Funds, consider the fund’s overall strategy, historical performance, expense ratio, underlying fund selection, and the expertise of the fund manager. Also, evaluate your risk tolerance and investment goals before choosing a FoF.

  • Overall strategy: Understand the FoF’s investment approach and how it aligns with your financial goals. Some FoFs focus on specific asset classes or themes, while others aim for broad diversification.
  • Expense ratio: FoFs have a layered fee structure, including fees for both the FoF and underlying funds. Compare total expense ratios carefully, as higher fees can significantly impact long-term returns.
  • Underlying fund selection: Evaluate the quality and performance of the underlying funds. Look for FoFs that invest in well-managed funds with strong track records.
  • Fund manager expertise: Assess the FoF manager’s experience and track record in selecting and managing underlying funds. Their skill can greatly influence the FoF’s overall performance.
  • Risk and returns: Analyze the FoF’s historical performance and risk metrics. Compare these against relevant benchmarks and category averages to gauge the fund’s effectiveness in achieving its objectives.

How to Invest in Top Fund Of Funds?

To invest in a top Fund of Funds, start by researching and comparing different FoFs based on their investment strategy, performance, and expense ratios. Once you’ve selected a FoF that aligns with your financial goals and risk tolerance, you can invest through Alice Blue, a user-friendly online investment platform.

Alice Blue provides tools and resources to help you make informed investment decisions. You can choose to invest a lump sum amount or opt for a Systematic Investment Plan (SIP), which allows you to invest a fixed amount regularly.

For most investors, a SIP is recommended as it helps in rupee cost averaging and reduces the impact of market volatility on your investment over time. Remember to review and rebalance your investment periodically to ensure it remains aligned with your financial goals.

Market trends can significantly influence Fund of Funds Mutual Funds, as their performance is tied to the underlying funds they invest in. The impact can vary depending on the FoF’s strategy and the types of funds it holds.

FoFs with a diverse mix of underlying funds may be less affected by trends in specific market segments. However, broader market trends can still impact overall performance. The FoF manager’s ability to adjust the fund mix in response to market trends can play a crucial role in performance.

How Fund Funds Perform in Volatile Markets?

Fund of Funds often demonstrate relative stability during volatile markets due to their inherent diversification across multiple funds and potentially different asset classes. This broad exposure can help mitigate the impact of poor performance in any single fund or market segment.

However, their performance can still be affected by overall market volatility. The extent of the impact depends on the FoF’s specific strategy and the types of underlying funds it holds. Some FoFs may even use this volatility as an opportunity to rebalance their portfolio.

Advantages of Investing in Fund Of Funds Mutual Funds

The main advantages of investing in Fund of Funds Mutual Funds include extensive diversification, professional fund selection, access to specialized strategies, and simplified portfolio management. These funds offer a convenient way to gain exposure to a variety of investment styles.

  • Diversification: FoFs provide broad diversification across multiple funds, asset classes, and investment strategies. This can help spread risk and potentially smooth out returns over time.
  • Professional management: FoF managers are responsible for selecting and monitoring the underlying funds. Their expertise can be valuable for investors who lack the time or knowledge to manage multiple fund investments.
  • Access to specialized strategies: FoFs can provide access to funds or strategies that might be difficult for individual investors to access directly. This can include international funds or niche sector-specific funds.
  • Simplified investing: By investing in a FoF, investors can gain exposure to multiple funds through a single investment. This simplifies portfolio management and reduces the administrative burden of managing multiple separate fund investments.

Risks of Investing in Fund Of Funds Mutual Funds

The main risks of investing in Fund of Funds Mutual Funds include potentially higher costs, over-diversification, performance lag, and dependence on the fund manager’s selection skills. These factors can impact the overall returns and effectiveness of FoF investments.

  • Higher costs: FoFs often have a layered fee structure, charging fees for both the FoF and the underlying funds. This can lead to higher overall expense ratios, potentially eating into returns.
  • Over-diversification: While diversification is generally beneficial, excessive diversification in a FoF can potentially dilute returns and limit the impact of high-performing underlying funds on overall performance.
  • Performance lag: FoFs may sometimes lag behind top-performing individual funds due to their diversified nature. In strongly trending markets, this diversification might limit potential gains.
  • Manager dependency: The performance of a FoF heavily relies on the fund manager’s skill in selecting and managing the underlying funds. Poor fund selection can negatively impact overall returns.

Contribution of Fund Of Funds to Portfolio Diversification

Fund of Funds can significantly enhance portfolio diversification by providing exposure to a wide range of investment strategies, asset classes, and geographic regions through a single investment. This broad diversification can help spread risk and potentially smooth out returns over time.

FoFs can be particularly useful for investors seeking comprehensive diversification without the need to research and manage multiple individual funds. They can provide access to specialized or hard-to-reach markets, further enhancing the diversification benefits for the overall investment portfolio.

Who Should Invest In A Fund Of Funds?

Fund of Funds are suitable for investors seeking broad diversification and professional fund management. They can be appropriate for those who want exposure to multiple investment strategies or asset classes but lack the time, expertise, or resources to research and manage individual fund investments.

FoFs can be a good fit for new investors looking for a simple way to build a diversified portfolio, or for more experienced investors seeking to complement their existing investments with broad-based exposure. They’re particularly suitable for those who value convenience and are willing to pay for professional fund selection.

Impact of Fund Manager Expertise on Fund Of Funds Performance

The expertise of the fund manager plays a crucial role in the performance of the Fund of Funds. A skilled manager can add significant value through their ability to select high-performing underlying funds, effectively allocate assets, and adjust the portfolio in response to changing market conditions.

The manager’s expertise in fund evaluation, market analysis, and risk management can greatly influence the FoF’s overall performance. Their decisions on fund selection, asset allocation, and portfolio rebalancing are key factors in determining the fund’s ability to meet its investment objectives and manage risk.

Fund Of Funds Taxation

Taxation of Fund of Funds in India depends on the underlying assets of the funds they invest in. If a FoF invests more than 65% in equity funds, it’s treated as an equity fund for tax purposes. Otherwise, it’s treated as a debt fund.

For equity-oriented FoFs, short-term capital gains (held for less than one year) are taxed at 15%, while long-term gains above ₹1 lakh per year are taxed at 10%. For debt-oriented FoFs, short-term gains are taxed at the investor’s income tax slab rate, and long-term gains are taxed at 20% with indexation benefits.

Alice Blue Image

FAQs – Fund Of Funds List

1. What Is a Fund Of Funds In Mutual Funds?

A Fund of Funds (FoF) in mutual funds is a type of investment fund that allocates its capital into other mutual funds rather than investing directly in stocks or bonds. It provides diversification and access to various asset classes through a single investment.

2. What Are the Top 5 Fund Of Funds Mutual Funds?

Top Fund Of Funds In Mutual Funds #1: BHARAT Bond FOF – April 2030
Top Fund Of Funds In Mutual Funds #2: Motilal Oswal Nasdaq 100 FOF
Top Fund Of Funds In Mutual Funds #3: Franklin India Feeder – Franklin U.S. Opportunities Fund
Top Fund Of Funds In Mutual Funds #4: Kotak NASDAQ 100 FoF
Top Fund Of Funds In Mutual Funds #5: Edelweiss US Technology Equity FOF

These funds are listed based on the Highest AUM.

3. What Are the Best Fund Of Funds Mutual Funds?

The best Fund of Funds Mutual Funds based on expense ratio include Mirae Asset NYSE FANG ETF FoF, BHARAT Bond FOF – April 2030, SBI Gold, Nippon India Gold Savings Fund, and HDFC Gold Fund. These funds offer diversified exposure to various asset classes while keeping expense ratios low.

4. Is It Safe To Invest In Fund Of Funds?

Fund of Funds are generally considered moderately safe due to their inherent diversification. However, they carry market risks like any mutual fund. Their safety depends on the underlying funds’ performance, the FoF’s strategy, and overall market conditions. Diversification can help mitigate some risks.

5. Which Fund Of Funds Mutual Fund Has the Best Returns?

The best-performing Fund of Funds can vary over time. Look for FoFs with consistent long-term returns (3-5 years) above their benchmark and category average. Consider factors like expense ratio, fund manager expertise, and the FoF’s overall strategy alongside returns when evaluating performance.

6. How to Invest in the Best Fund Of Funds Mutual Fund?

To invest in the best Fund of Funds Mutual Fund, research top-performing funds, and compare their returns, strategies, and expense ratios. Then, open an account with Alice Blue, a user-friendly investment platform. Choose between a lump sum investment or starting a Systematic Investment Plan (SIP) for regular investing.

We hope you’re clear on the topic, but there’s more to explore in stocks, commodities, mutual funds, and related areas. Here are important topics to learn about.

Best Shares Below 500 RupeesUpper Circuit StocksThematic Mutual FundsBest Flexi Cap Mutual FundsLarge Cap Stocks
Best Low Prices Shares To BuyDebt Free
Companies
Best Contra Mutual FundsBest Mid Cap Mutual FundLarge Cap Stocks List In Nse
Liquid StocksLong Term StocksBest Arbitrage Mutual FundsSmall Cap
Companies
Large cap stocks under 100
Nifty ITBest Short Term StocksBest Dividend Yield FundSmall Cap Stocks Under 50 RsLarge cap stocks under 200
Nifty CPSE StocksTop Liquid Mutual FundsBest Target Maturity FundSmall Cap Stocks 100Top Tata Shares
Nifty Total Market IndexBest Fixed Maturity Plans IndiaBest Value FundMid Cap StocksTop Adani Group Shares List
BSE TechCorporate Bonds In IndiaBest Focused FundsList Of Mid Cap Stocks In NseBirla Group Stocks
Safe Investments With High Returns In IndiaBest Hybrid Mutual FundBest Liquid Funds In IndiaBest Mid Cap Stocks Under 100 RsHinduja stocks
Lower Circuit StocksSolution Oriented Mutual FundsBest SWP In Mutual FundMidcap Stocks under 50List Of HDFC stocks

Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.

All Topics
Related Posts