Fund Of Funds – Best Fund Of Funds

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

Name	AUM (Cr)	NAV (Rs)	Minimum SIP (Rs)
BHARAT Bond FOF – April 2030	6796.31	13.85	100
Motilal Oswal Nasdaq 100 FOF	4844.82	34.07	6000
Franklin India Feeder – Franklin U.S. Opportunities Fund	3433.00	75.99	100
Kotak NASDAQ 100 FoF	3227.74	16.81	100
Edelweiss US Technology Equity FOF	2337.13	24.32	100
HDFC Gold Fund	2071.90	22.75	100
SBI Gold	1878.67	22.24	5000
Nippon India Gold Savings Fund	1848.28	29.12	5000
ICICI Pru Thematic Advantage Fund	1746.93	223.39	5000
Mirae Asset NYSE FANG ETF FoF	1510.97	20.41	100

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%.

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.

Name	Expense Ratio (%)	Minimum SIP (Rs)
Mirae Asset NYSE FANG ETF FoF	0.05	100
BHARAT Bond FOF – April 2030	0.06	100
SBI Gold	0.1	5000
Nippon India Gold Savings Fund	0.14	5000
HDFC Gold Fund	0.18	100
Motilal Oswal Nasdaq 100 FOF	0.24	6000
Kotak NASDAQ 100 FoF	0.3	100
ICICI Pru Thematic Advantage Fund	0.44	5000
Franklin India Feeder – Franklin U.S. Opportunities Fund	0.58	100
Edelweiss US Technology Equity FOF	1.41	100

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.

Name	CAGR 3Y (Cr)	Minimum SIP (Rs)
Mirae Asset NYSE FANG ETF FoF	23.39	100
ICICI Pru Thematic Advantage Fund	22.64	5000
Kotak NASDAQ 100 FoF	14.01	100
SBI Gold	13.85	5000
HDFC Gold Fund	13.76	100
Nippon India Gold Savings Fund	13.53	5000
Motilal Oswal Nasdaq 100 FOF	12.71	6000
Edelweiss US Technology Equity FOF	8.44	100
Franklin India Feeder – Franklin U.S. Opportunities Fund	6.06	100
BHARAT Bond FOF – April 2030	6.05	100

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.

Name	AMC	Exit Load (%)
Kotak NASDAQ 100 FoF	Kotak Mahindra Asset Management Company Limited	0
Motilal Oswal Nasdaq 100 FOF	Motilal Oswal Asset Management Company Limited	0
BHARAT Bond FOF – April 2030	Edelweiss Asset Management Limited	0.1
Mirae Asset NYSE FANG ETF FoF	Mirae Asset Investment Managers (India) Private Limited	0.5
ICICI Pru Thematic Advantage Fund	ICICI Prudential Asset Management Company Limited	1
Franklin India Feeder – Franklin U.S. Opportunities Fund	Franklin Templeton Asset Management (India) Private Limited	1
Edelweiss US Technology Equity FOF	Edelweiss Asset Management Limited	1
HDFC Gold Fund	HDFC Asset Management Company Limited	1
Nippon India Gold Savings Fund	Nippon Life India Asset Management Limited	1
SBI Gold	SBI Funds Management Limited	1

Fund Of Funds Mutual Funds Returns

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

Name	Absolute Returns – 1Y (%)	Minimum SIP (Rs)
Mirae Asset NYSE FANG ETF FoF	55.08	100
ICICI Pru Thematic Advantage Fund	38.54	5000
Franklin India Feeder – Franklin U.S. Opportunities Fund	34.99	100
Edelweiss US Technology Equity FOF	34.33	100
Kotak NASDAQ 100 FoF	33.14	100
Motilal Oswal Nasdaq 100 FOF	32.24	6000
HDFC Gold Fund	20.81	100
Nippon India Gold Savings Fund	20.80	5000
SBI Gold	20.70	5000
BHARAT Bond FOF – April 2030	7.99	100

Historical Performance of Fund Funds

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

Name	CAGR 5Y (Cr)	Minimum SIP (Rs)
ICICI Pru Thematic Advantage Fund	27.87	5000
Motilal Oswal Nasdaq 100 FOF	23.61	6000
Franklin India Feeder – Franklin U.S. Opportunities Fund	16.57	100
SBI Gold	12.86	5000
HDFC Gold Fund	12.73	100
Nippon India Gold Savings Fund	12.64	5000

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.

Impact of Market Trends on Top Fund Of Funds Mutual Funds

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.

FAQs – Fund Of Funds List

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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.