New DelhiOne hour ago
- copy link
Rising inflation in the midst of the Corona epidemic has made people in a bad condition. In such a situation, if you are looking for such a scheme to invest money, from here you can get good returns so that you can beat inflation, then you can invest in the ‘Fund of Funds’ category of mutual funds. Today we are telling you about this category of mutual funds.
First of all understand what is ‘Fund of Funds’?
Fund of Funds is a mutual fund scheme that invests in other mutual fund schemes. But it is not limited to index funds and exchange-traded funds (ETFs). By investing in multiple schemes, Fund of Funds can give an investor a broad exposure to multiple market segments or strategies and also have the potential to generate better returns.
For example, if the fund manager wants to invest in gold, then he will invest money in a gold scheme investing in gold, in whichever scheme the fund manager wants to invest. This means that a fund of funds is a mutual fund scheme that invests in other schemes. She is not obliged to invest money in any one scheme. While Fund of Funds does not hold shares or bonds of the company, Fund of Funds holds units of other schemes. A Fund of Funds can invest in multiple schemes of its own fund house or other fund houses.
You can diversify your portfolio with less investment
The biggest advantage of investing in this is small investors who are unable to invest in different investment options due to lack of funds. They can diversify their portfolio in a small amount through this scheme. The chances of earning more return on investment increase.
There are different types of ‘Fund of Funds’?
Fund of Funds can be of three types. One who invests in equities. Others who invest money in debt funds. Third, those whose investments are in international markets. These three types cover almost all asset classes.
Who should invest in this?
Those people who want to diversify their portfolio by investing less money in mutual funds, it would be right to invest in them. Apart from this, it is also suitable for those who do not have much knowledge about mutual funds, as a world class fund manager handles your money. This also reduces your risk.
These ‘Fund of Funds’ gave good returns
|Fund Name||What is the return (%) in 1 year||Average Annual Return over the last 3 years (in %)||Average Annual Return over the last 5 years (in %)|
|ICICI Prudential Advisor Series||62.9||12.6||12.9|
|UTI Nifty Index Fund||57.6||14.8||14.8|
|ICICI Prudential Nifty Index Fund||56.8||14.3||14.2|
|SBI Nifty Index Fund||56.8||14.1||14.1|
|IDFC Nifty Fund||56.8||14.8||