Have you ever heard of a scheme that invests your money in further schemes?
No, it's not any kind of a fraud or a scam.
It's a legitimate mutual fund scheme.
A *Fund of Fund (FoF)* is a mutual fund scheme that invests in other mutual funds.
The fund manager invests in a portfolio of other mutual funds rather than directly investing in equity or bonds.
The FoF schemes invest in domestic as well as overseas funds.
Basically, you get an in-built Mutual Funds portfolio.
I am not a fan of FoF schemes for the simple reason that I would prefer an advisor to manage my MF portfolio rather than investing in an FoF.
I can discuss, plan and implement my portfolio with an Advisor, as per my financial goals.
This is not possible with FoF.
What is your view on FoF?