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Table of Contents
- What are Fund of Funds?
- What are the Types of Fund of Funds?
- Who should Invest in Fund of Funds?
- Advantages of Investing in Fund of Funds
- Limitations of Fund of Funds
- Best Performing Fund of Funds to Invest 2023
- Advantages of Fund of Funds
- How Does a Fund of Fund Works?
- Why Choose Fund of Funds?
- How to Invest in FOF Mutual Funds Online?
- FAQs
- 1. What is the most significant advantage of FOFs?
- 2. What are the different types of FOFs?
- 3. What are the parameters to consider while investing in FOFs?
- 4. Which FOF has shown the best returns?
- 5. Is there any commonest FOFs?
- 6. What is one of the most critical limitations of FOF?
- 7. Do FOFs have a long lock-in period?
Top 7 Funds
- Kotak Asset Allocator Fund - FOF
- ICICI Prudential Advisor Series - Passive Strategy Fund
- IDBI Nifty Index Fund
- PGIM India Global Agribusiness Offshore Fund
- ICICI Prudential Advisor Series - Hybrid Fund
- Aditya Birla Sun Life Financial Planning FOF Aggressive Plan
- ICICI Prudential Advisor Series - Conservative Fund
7 Best Fund of Funds in India 2023
fund of funds is one of the Top Mutual Funds for investors whose investment amounts are not too large and it is easier to manage one fund (a fund of funds) rather than a number of Mutual Funds. In this form of mutual fund investment strategy, investors get to hold a number of funds under the umbrella of a single fund, hence the name funds of funds.
Often going by the name of multi-manager investment; it is considered as one of the mutual fund categories. One of the key advantages of multi-manager investments is that at a lower ticket size, the investor can diversify themselves across a gamut of mutual fund schemes. So let us go through the numerous aspects of fund of funds like why to invest in a fund of funds, advantages of fund of funds, fund of funds in India, the performance of fund of funds, and other important aspects.
What are Fund of Funds?
In simple words, a Mutual Fund Investing its collected pool of money in another mutual fund (one or maybe more) is referred to as fund of funds. Investors in their portfolios take exposure to different funds and keep track of them separately. However, by Investing in multi-manager mutual funds this process gets more simplified as investors need to track only one fund, which in turn holds numerous mutual funds within it. Assume an individual has invested in 10 different funds having exposure in various financial assets like stocks, Bonds, government securities, gold, etc. However, he finds it difficult in managing those funds as he needs to keep a track of each fund separately. Therefore, to avoid such hassles, the investor invests money in a multi-management investment (or a single funds of funds strategy) which has its stakes in different Mutual Funds.
What are the Types of Fund of Funds?
1. Asset allocation funds
These funds consist of a diverse asset pool – with securities comprising of equity, debt instruments, precious metals, etc. This allows Asset Allocation funds to generate high returns through the best performing instrument, at a reduced risk level guaranteed by the relatively stable securities present in the portfolio.
2. Gold funds
Investing in different Mutual Funds, primarily trading in gold securities are gold funds. Fund of funds belonging to this category can have a portfolio of Mutual Funds or the gold trading companies themselves, depending upon the concerned asset management company.
3. International fund of funds
Mutual Funds operating in foreign countries are targeted by the international fund of funds. This allows investors to potentially yield higher returns through the best-performing stocks and bonds of the respective country.
4. Multi-manager fund of funds
This is the most common type of fund of funds Mutual Funds available in the Market. The asset base of such a fund comprises of various professionally managed Mutual Funds, all of which have a different portfolio concentration. A multi-manager fund of funds usually has multiple portfolio managers, each dealing with a specific asset present in the Mutual Fund.
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5. ETF Fund of Funds
Fund of funds comprising Exchange Traded Fund in their portfolio is a popular investment tool in the country. Investing in an ETF through fund of funds is more accessible than a direct investment in this instrument. This is because ETFs require the a Demat Trading Account while investing in ETF fund of funds have no such limitations.
However, ETFs have a slightly higher risk Factor associated with them as they are traded like shares in the stock market, making these fund of funds more susceptible to the volatility of the market.
Who should Invest in Fund of Funds?
The main aim of the top fund of funds is to maximise returns by investing in a varied portfolio posing minimal risk. Individuals with access to a small pool of financial resources which they can spare for a more extended period of time can choose such a Mutual Fund. Since the portfolio of such funds consists of varying Types of Mutual Funds, it ensures access to high-value funds as well.
Ideally, investors with relatively fewer resources and low liquidity needs can choose to invest in the top fund of funds available in the market. This enables them to earn maximum returns at minimal risk.
Advantages of Investing in Fund of Funds
There are various benefits of investing in a fund of funds Mutual Fund –
1. Diversification
Fund of funds target various Best Performing Mutual Funds in the market, each specialising in a particular asset or sector of fund. This ensures gains through diversification, as both returns and risks are optimised due to underlying portfolio variety.
2. Professionally trained managers
Fund of funds is managed by highly trained people with years of experience. Proper analysis and calculated market predictions made by such portfolio managers ensure high yields through intricate investment strategies.
3. Low resource requirements
An individual with limited financial resources can easily invest in the top fund of funds available to earn higher profits. Monthly investment schemes can also be availed while choosing a fund of funds to invest in.
Limitations of Fund of Funds
1. Expense ratio
Expense ratios to manage a fund of funds Mutual Funds are higher than standard Mutual Funds, as it has a higher managing expense. Added expenses include primarily choosing the right asset to invest in, which keeps on fluctuating periodically.
2. Tax
Tax levied on a fund of funds are payable by an investor, only during Redemption of the principal amount. However, during recovery, both short-term and long-term Capital gains are subjected to tax deductions, depending upon the annual Income of the investor and the time period of investment.
Best Performing Fund of Funds to Invest 2023
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2022 (%) Kotak Asset Allocator Fund - FOF Growth ₹167.839
↑ 0.37 ₹1,073 6.7 12.3 18.9 20.2 16.7 11.3 ICICI Prudential Advisor Series - Passive Strategy Fund Growth ₹116.147
↑ 0.31 ₹119 8.1 13.6 18.5 22.2 11.4 4.2 IDBI Nifty Index Fund Growth ₹36.2111
↓ -0.02 ₹208 9.1 11.9 16.2 20.3 11.7 PGIM India Global Agribusiness Offshore Fund Growth ₹31.74
↑ 0.66 ₹1,495 4.2 15.6 15.1 1.8 13.3 -33.8 ICICI Prudential Advisor Series - Hybrid Fund Growth ₹51.2543
↑ 0.13 ₹282 5.9 8.3 13.5 11.1 9.4 6.7 Aditya Birla Sun Life Financial Planning FOF Aggressive Plan Growth ₹38.6825
↑ 0.15 ₹175 7.8 11.2 13.1 16.9 10.9 3.6 ICICI Prudential Advisor Series - Conservative Fund Growth ₹91.9301
↑ 0.22 ₹20,384 5.2 8.6 13.1 15.2 11.8 8.2 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 21 Aug 23 Assets >= 50 Crore & Sorted based on 1 year Return.
The investment objective of the scheme is to generate long-term capital appreciation from a portfolio created by investing in
specified open-ended equity, and debt schemes of Kotak Mahindra Mutual Fund. However, there is no assurance that the investment objective of the Scheme will be realized Kotak Asset Allocator Fund - FOF is a Others - Fund of Fund fund was launched on 9 Aug 04. It is a fund with Moderately High risk and has given a Below is the key information for Kotak Asset Allocator Fund - FOF Returns up to 1 year are on (Erstwhile ICICI Prudential Advisor Series - Long Term Savings Plan) The primary investment objective of this Plan is to seek to generate long term capital appreciation from a portfolio that is invested predominantly in the schemes of domestic or offshore Mutual Fund(s) mainly having asset allocation to: • Equity and equity related securities and • A small portion in debt and money market instruments. However, there can be no assurance that the investment objective of the Scheme will be realized. ICICI Prudential Advisor Series - Passive Strategy Fund is a Others - Fund of Fund fund was launched on 18 Dec 03. It is a fund with Moderately High risk and has given a Below is the key information for ICICI Prudential Advisor Series - Passive Strategy Fund Returns up to 1 year are on The investment objective of the scheme is to invest in the stocks and equity related instruments comprising the S&P CNX Nifty Index in the same weights as these stocks represented in the Index with the intent to replicate the performance of the Total Returns Index of S&P CNX Nifty index. The scheme will adopt a passive investment strategy and will seek to achieve the investment objective by minimizing the tracking error between the S&P CNX Nifty index (Total Returns Index) and the scheme. IDBI Nifty Index Fund is a Others - Index Fund fund was launched on 25 Jun 10. It is a fund with Moderately High risk and has given a Below is the key information for IDBI Nifty Index Fund Returns up to 1 year are on The primary investment objective of the scheme is to generate long-term capital growth by investing predominantly in units of overseas mutual funds, focusing on
agriculture and/or would be direct and indirect beneficiaries of the anticipated growth in the agriculture and/or affiliated/allied sectors. PGIM India Global Agribusiness Offshore Fund is a Others - Fund of Fund fund was launched on 14 May 10. It is a fund with High risk and has given a Below is the key information for PGIM India Global Agribusiness Offshore Fund Returns up to 1 year are on (Erstwhile ICICI Prudential Advisor Series - Cautious Plan) The primary investment objective of this Plan is to seek to generate regular income primarily through investments in the schemes of domestic or offshore Mutual Fund(s) having asset allocation: • Primarily to fixed income securities • To a lesser extent (maximum 35%) in equity and equity related securities so as to generate long-term capital appreciation. However, there can be no assurance that the investment objectives of the Plan/s will be realized. ICICI Prudential Advisor Series - Hybrid Fund is a Others - Fund of Fund fund was launched on 18 Dec 03. It is a fund with Moderately High risk and has given a Below is the key information for ICICI Prudential Advisor Series - Hybrid Fund Returns up to 1 year are on The Scheme aims to generate returns by investing in mutual fund schemes selected in accordance with the BSLAMC process, as per the risk-return profile of investors. Each of the 3 plans under the Scheme has a strategic asset allocation which is based on satisfying the needs to a specific risk-return profile of investors. There can be no assurance that the investment objective of the Scheme will be realized. Aditya Birla Sun Life Financial Planning FOF Aggressive Plan is a Others - Fund of Fund fund was launched on 9 May 11. It is a fund with Moderately High risk and has given a Below is the key information for Aditya Birla Sun Life Financial Planning FOF Aggressive Plan Returns up to 1 year are on (Erstwhile ICICI Prudential Advisor Series - Moderate Plan) The primary investment objective of this Plan is to seek to generate long term capital appreciation and current income by creating a portfolio that is invested in the schemes of domestic or offshore Mutual Fund(s) mainly having asset allocation to: • Equity and equity related securities as well as • Fixed income securities. However, there can be no assurance that the investment objectives of the Plan/s will be realized. ICICI Prudential Advisor Series - Conservative Fund is a Others - Fund of Fund fund was launched on 18 Dec 03. It is a fund with Moderately High risk and has given a Below is the key information for ICICI Prudential Advisor Series - Conservative Fund Returns up to 1 year are on 1. Kotak Asset Allocator Fund - FOF
CAGR/Annualized return of 16% since its launch. Ranked 17 in Fund of Fund category. Return for 2022 was 11.3% , 2021 was 25% and 2020 was 25% . Kotak Asset Allocator Fund - FOF
Growth Launch Date 9 Aug 04 NAV (21 Aug 23) ₹167.839 ↑ 0.37 (0.22 %) Net Assets (Cr) ₹1,073 on 31 Jul 23 Category Others - Fund of Fund AMC Kotak Mahindra Asset Management Co Ltd Rating ☆☆☆☆ Risk Moderately High Expense Ratio 0.76 Sharpe Ratio 2.03 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load 0-1 Years (1%),1 Years and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Aug 18 ₹10,000 31 Aug 19 ₹10,672 31 Aug 20 ₹12,306 31 Aug 21 ₹16,885 31 Aug 22 ₹18,218 31 Aug 23 ₹21,822 Returns for Kotak Asset Allocator Fund - FOF
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 21 Aug 23 Duration Returns 1 Month -0.2% 3 Month 6.7% 6 Month 12.3% 1 Year 18.9% 3 Year 20.2% 5 Year 16.7% 10 Year 15 Year Since launch 16% Historical performance (Yearly) on absolute basis
Year Returns 2022 11.3% 2021 25% 2020 25% 2019 10.3% 2018 4.4% 2017 13.7% 2016 8.8% 2015 5.4% 2014 40.4% 2013 6.1% Fund Manager information for Kotak Asset Allocator Fund - FOF
Name Since Tenure Abhishek Bisen 15 Nov 21 1.79 Yr. Devender Singhal 9 May 19 4.32 Yr. Arjun Khanna 9 May 19 4.32 Yr. Data below for Kotak Asset Allocator Fund - FOF as on 31 Jul 23
Asset Allocation
Asset Class Value Cash 17.62% Equity 54.63% Debt 19.58% Other 8.16% Top Securities Holdings / Portfolio
Name Holding Value Quantity Kotak Equity Arbitrage Dir Gr
Investment Fund | -15% ₹163 Cr 47,078,648
↓ -14,457,154 Kotak Bond Dir Gr
Investment Fund | -14% ₹157 Cr 21,279,938 Kotak Flexicap Dir Gr
Investment Fund | -13% ₹141 Cr 20,933,168 iShares NASDAQ 100 ETF USD Acc
- | -10% ₹113 Cr 15,440 Kotak Bluechip Dir Gr
Investment Fund | -10% ₹108 Cr 2,296,393 Kotak Infra & Econ Reform Dir Gr
Investment Fund | -9% ₹96 Cr 18,399,092 Kotak Gold ETF
- | -8% ₹91 Cr 18,045,000 Kotak Nifty PSU Bank ETF
- | -8% ₹89 Cr 2,000,000 Kotak Gilt-Investment Growth - Direct
Investment Fund | -6% ₹61 Cr 6,529,888
↑ 6,529,888 Kotak Manufacture in India Dir Gr
Investment Fund | -5% ₹55 Cr 41,081,682 2. ICICI Prudential Advisor Series - Passive Strategy Fund
CAGR/Annualized return of 13.3% since its launch. Return for 2022 was 4.2% , 2021 was 30.3% and 2020 was 10.7% . ICICI Prudential Advisor Series - Passive Strategy Fund
Growth Launch Date 18 Dec 03 NAV (22 Aug 23) ₹116.147 ↑ 0.31 (0.27 %) Net Assets (Cr) ₹119 on 31 Jul 23 Category Others - Fund of Fund AMC ICICI Prudential Asset Management Company Limited Rating Risk Moderately High Expense Ratio 0.35 Sharpe Ratio 1.47 Information Ratio 0.39 Alpha Ratio 6.72 Min Investment 5,000 Min SIP Investment 1,000 Exit Load 0-3 Years (1%),3 Years and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Aug 18 ₹10,000 31 Aug 19 ₹9,239 31 Aug 20 ₹9,210 31 Aug 21 ₹14,089 31 Aug 22 ₹14,566 31 Aug 23 ₹16,925 Returns for ICICI Prudential Advisor Series - Passive Strategy Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 21 Aug 23 Duration Returns 1 Month 0.5% 3 Month 8.1% 6 Month 13.6% 1 Year 18.5% 3 Year 22.2% 5 Year 11.4% 10 Year 15 Year Since launch 13.3% Historical performance (Yearly) on absolute basis
Year Returns 2022 4.2% 2021 30.3% 2020 10.7% 2019 6.7% 2018 4% 2017 19.2% 2016 11.2% 2015 1.2% 2014 29.6% 2013 0.3% Fund Manager information for ICICI Prudential Advisor Series - Passive Strategy Fund
Name Since Tenure Sankaran Naren 5 Sep 18 4.99 Yr. Dharmesh Kakkad 28 May 18 5.26 Yr. Data below for ICICI Prudential Advisor Series - Passive Strategy Fund as on 31 Jul 23
Asset Allocation
Asset Class Value Cash 3.71% Equity 96.29% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Pru Nifty Private Banks ETF
- | -15% ₹17 Cr 762,327 ICICI Pru Nifty Bank ETF
- | -15% ₹17 Cr 3,909,440
↓ -250,000 ICICI Pru Nifty IT ETF
- | -14% ₹17 Cr 5,120,640 ICICI Pru Nifty Healthcare ETF
- | -14% ₹16 Cr 1,654,961 ICICI Prudential Nifty Infra ETF
- | -13% ₹15 Cr 2,474,892 CPSE ETF
- | -10% ₹12 Cr 2,510,000
↑ 125,000 ICICI Pru Nifty India Consumption ETF
- | -8% ₹10 Cr 1,150,530 ICICI Pru Nifty FMCG ETF
- | -7% ₹8 Cr 149,030 Treps
CBLO/Reverse Repo | -3% ₹3 Cr Net Current Assets
Net Current Assets | -0% ₹1 Cr 3. IDBI Nifty Index Fund
CAGR/Annualized return of 10.3% since its launch. Ranked 83 in Index Fund category. . IDBI Nifty Index Fund
Growth Launch Date 25 Jun 10 NAV (28 Jul 23) ₹36.2111 ↓ -0.02 (-0.06 %) Net Assets (Cr) ₹208 on 30 Jun 23 Category Others - Index Fund AMC IDBI Asset Management Limited Rating ☆ Risk Moderately High Expense Ratio 0.9 Sharpe Ratio 1.04 Information Ratio -3.93 Alpha Ratio -1.03 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Growth of 10,000 investment over the years.
Date Value 31 Aug 18 ₹10,000 31 Aug 19 ₹9,470 31 Aug 20 ₹9,751 31 Aug 21 ₹14,589 31 Aug 22 ₹15,209 Returns for IDBI Nifty Index Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 21 Aug 23 Duration Returns 1 Month 3.7% 3 Month 9.1% 6 Month 11.9% 1 Year 16.2% 3 Year 20.3% 5 Year 11.7% 10 Year 15 Year Since launch 10.3% Historical performance (Yearly) on absolute basis
Year Returns 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Fund Manager information for IDBI Nifty Index Fund
Name Since Tenure Data below for IDBI Nifty Index Fund as on 30 Jun 23
Asset Allocation
Asset Class Value Top Securities Holdings / Portfolio
Name Holding Value Quantity 4. PGIM India Global Agribusiness Offshore Fund
CAGR/Annualized return of 9.1% since its launch. Ranked 33 in Fund of Fund category. Return for 2022 was -33.8% , 2021 was 7% and 2020 was 72.4% . PGIM India Global Agribusiness Offshore Fund
Growth Launch Date 14 May 10 NAV (21 Aug 23) ₹31.74 ↑ 0.66 (2.12 %) Net Assets (Cr) ₹1,495 on 31 Jul 23 Category Others - Fund of Fund AMC Pramerica Asset Managers Private Limited Rating ☆ Risk High Expense Ratio 1.61 Sharpe Ratio 0.71 Information Ratio -0.57 Alpha Ratio 2.52 Min Investment 5,000 Min SIP Investment 1,000 Exit Load 0-12 Months (1%),12 Months and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Aug 18 ₹10,000 31 Aug 19 ₹10,868 31 Aug 20 ₹17,436 31 Aug 21 ₹21,929 31 Aug 22 ₹14,895 31 Aug 23 ₹18,514 Returns for PGIM India Global Agribusiness Offshore Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 21 Aug 23 Duration Returns 1 Month -2.1% 3 Month 4.2% 6 Month 15.6% 1 Year 15.1% 3 Year 1.8% 5 Year 13.3% 10 Year 15 Year Since launch 9.1% Historical performance (Yearly) on absolute basis
Year Returns 2022 -33.8% 2021 7% 2020 72.4% 2019 30.9% 2018 0.3% 2017 11.9% 2016 0.8% 2015 -14.7% 2014 0.9% 2013 13.4% Fund Manager information for PGIM India Global Agribusiness Offshore Fund
Name Since Tenure Ojasvi Khicha 1 Apr 23 0.42 Yr. Data below for PGIM India Global Agribusiness Offshore Fund as on 31 Jul 23
Asset Allocation
Asset Class Value Cash 0.83% Equity 96.51% Top Securities Holdings / Portfolio
Name Holding Value Quantity PGIM Jennison Global Eq Opps USD I Acc
Investment Fund | -99% ₹1,485 Cr 744,373
↓ -22,850 Clearing Corporation Of India Ltd.
CBLO/Reverse Repo | -0% ₹7 Cr Net Receivables / (Payables)
Net Current Assets | -0% ₹3 Cr 5. ICICI Prudential Advisor Series - Hybrid Fund
CAGR/Annualized return of 8.7% since its launch. Return for 2022 was 6.7% , 2021 was 10.8% and 2020 was 9.2% . ICICI Prudential Advisor Series - Hybrid Fund
Growth Launch Date 18 Dec 03 NAV (21 Aug 23) ₹51.2543 ↑ 0.13 (0.26 %) Net Assets (Cr) ₹282 on 31 Jul 23 Category Others - Fund of Fund AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆ Risk Moderately High Expense Ratio 1.06 Sharpe Ratio 2.32 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load 0-1 Months (0.25%),1 Months and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Aug 18 ₹10,000 31 Aug 19 ₹10,747 31 Aug 20 ₹11,403 31 Aug 21 ₹13,187 31 Aug 22 ₹13,890 31 Aug 23 ₹15,705 Returns for ICICI Prudential Advisor Series - Hybrid Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 21 Aug 23 Duration Returns 1 Month 1.3% 3 Month 5.9% 6 Month 8.3% 1 Year 13.5% 3 Year 11.1% 5 Year 9.4% 10 Year 15 Year Since launch 8.7% Historical performance (Yearly) on absolute basis
Year Returns 2022 6.7% 2021 10.8% 2020 9.2% 2019 8.6% 2018 6.4% 2017 5.8% 2016 9.6% 2015 3% 2014 22% 2013 1.2% Fund Manager information for ICICI Prudential Advisor Series - Hybrid Fund
Name Since Tenure Manish Banthia 16 Jun 17 6.21 Yr. Ritesh Lunawat 29 Dec 20 2.67 Yr. Dharmesh Kakkad 28 May 18 5.26 Yr. Data below for ICICI Prudential Advisor Series - Hybrid Fund as on 31 Jul 23
Asset Allocation
Asset Class Value Cash 16.61% Equity 35.26% Debt 48.13% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Pru Floating Interest Dir Gr
Investment Fund | -57% ₹160 Cr 4,014,885 ICICI Pru Value Discovery Dir Gr
Investment Fund | -13% ₹37 Cr 1,079,966 ICICI Pru Equity & Debt Dir Gr
Investment Fund | -11% ₹30 Cr 998,794 ICICI Pru Exports and Services Dir Gr
Investment Fund | -8% ₹23 Cr 1,890,949
↓ -506,249 ICICI Pru Bharat Consumption Dir Cum
Investment Fund | -6% ₹16 Cr 7,918,582 ICICI Pru Technology Dir Gr
Investment Fund | -3% ₹8 Cr 507,474 Treps
CBLO/Reverse Repo | -2% ₹7 Cr Net Current Assets
Net Current Assets | -0% ₹1 Cr 6. Aditya Birla Sun Life Financial Planning FOF Aggressive Plan
CAGR/Annualized return of 11.6% since its launch. Ranked 54 in Fund of Fund category. Return for 2022 was 3.6% , 2021 was 21.1% and 2020 was 19.2% . Aditya Birla Sun Life Financial Planning FOF Aggressive Plan
Growth Launch Date 9 May 11 NAV (21 Aug 23) ₹38.6825 ↑ 0.15 (0.40 %) Net Assets (Cr) ₹175 on 31 Jul 23 Category Others - Fund of Fund AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆ Risk Moderately High Expense Ratio 1.07 Sharpe Ratio 1.28 Information Ratio 0.35 Alpha Ratio 3.66 Min Investment 1,000 Min SIP Investment 100 Exit Load 0-365 Days (1%),365 Days and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Aug 18 ₹10,000 31 Aug 19 ₹9,426 31 Aug 20 ₹10,383 31 Aug 21 ₹14,313 31 Aug 22 ₹14,826 31 Aug 23 ₹16,996 Returns for Aditya Birla Sun Life Financial Planning FOF Aggressive Plan
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 21 Aug 23 Duration Returns 1 Month 0.7% 3 Month 7.8% 6 Month 11.2% 1 Year 13.1% 3 Year 16.9% 5 Year 10.9% 10 Year 15 Year Since launch 11.6% Historical performance (Yearly) on absolute basis
Year Returns 2022 3.6% 2021 21.1% 2020 19.2% 2019 6.9% 2018 -2.6% 2017 26.5% 2016 7.5% 2015 4.4% 2014 37.1% 2013 1.2% Fund Manager information for Aditya Birla Sun Life Financial Planning FOF Aggressive Plan
Name Since Tenure Vinod Bhat 16 Aug 19 4.04 Yr. Dhaval Joshi 21 Nov 22 0.78 Yr. Data below for Aditya Birla Sun Life Financial Planning FOF Aggressive Plan as on 31 Jul 23
Asset Allocation
Asset Class Value Cash 8.75% Equity 73.46% Debt 10.56% Other 7.23% Top Securities Holdings / Portfolio
Name Holding Value Quantity Nippon India Small Cap Dir Gr
Investment Fund | -11% ₹20 Cr 1,500,751 HDFC Large and Mid Cap Dir Gr
Investment Fund | -10% ₹17 Cr 698,916
↑ 305,519 Kotak Emerging Equity Dir Gr
Investment Fund | -10% ₹17 Cr 1,688,550
↓ -356,838 Kotak Multicap Dir Gr
Investment Fund | -10% ₹17 Cr 13,205,333
↑ 5,770,742 ICICI Pru Bluechip Dir Gr
Investment Fund | -8% ₹14 Cr 1,703,175 Aditya BSL Small Cap Dir Gr
Investment Fund | -8% ₹14 Cr 1,925,560
↑ 1,044,024 Mirae Asset Midcap Dir Gr
Investment Fund | -8% ₹14 Cr 5,140,256
↑ 2,781,989 Aditya BSL Frontline Equity Dir Gr
Investment Fund | -7% ₹13 Cr 309,819 Aditya BSL Gold ETF
- | -7% ₹13 Cr 2,437,471
↓ -149,840 ICICI Pru Savings Dir Gr
Investment Fund | -6% ₹10 Cr 218,848 7. ICICI Prudential Advisor Series - Conservative Fund
CAGR/Annualized return of 11.9% since its launch. Return for 2022 was 8.2% , 2021 was 16.6% and 2020 was 13.4% . ICICI Prudential Advisor Series - Conservative Fund
Growth Launch Date 18 Dec 03 NAV (21 Aug 23) ₹91.9301 ↑ 0.22 (0.24 %) Net Assets (Cr) ₹20,384 on 31 Jul 23 Category Others - Fund of Fund AMC ICICI Prudential Asset Management Company Limited Rating ☆☆ Risk Moderately High Expense Ratio 1.35 Sharpe Ratio 2.34 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load 0-1 Years (1%),1 Years and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Aug 18 ₹10,000 31 Aug 19 ₹10,535 31 Aug 20 ₹11,277 31 Aug 21 ₹14,493 31 Aug 22 ₹15,435 31 Aug 23 ₹17,494 Returns for ICICI Prudential Advisor Series - Conservative Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 21 Aug 23 Duration Returns 1 Month 0.5% 3 Month 5.2% 6 Month 8.6% 1 Year 13.1% 3 Year 15.2% 5 Year 11.8% 10 Year 15 Year Since launch 11.9% Historical performance (Yearly) on absolute basis
Year Returns 2022 8.2% 2021 16.6% 2020 13.4% 2019 9.7% 2018 8.6% 2017 15.3% 2016 12.8% 2015 2.3% 2014 25.5% 2013 2.3% Fund Manager information for ICICI Prudential Advisor Series - Conservative Fund
Name Since Tenure Sankaran Naren 5 Sep 18 4.99 Yr. Manish Banthia 16 Jun 17 6.21 Yr. Ritesh Lunawat 12 Jun 23 0.22 Yr. Dharmesh Kakkad 28 May 18 5.26 Yr. Data below for ICICI Prudential Advisor Series - Conservative Fund as on 31 Jul 23
Asset Allocation
Asset Class Value Cash 13.16% Equity 43.09% Debt 33.93% Other 9.81% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Pru Gold ETF
- | -10% ₹2,029 Cr 391,020,547
↑ 154,880,000 ICICI Pru All Seasons Bond Dir Gr
Investment Fund | -9% ₹1,790 Cr 526,081,188
↑ 29,605,026 ICICI Pru Large & Mid Cap Dir Gr
Investment Fund | -8% ₹1,600 Cr 21,880,843 ICICI Pru Floating Interest Dir Gr
Investment Fund | -8% ₹1,598 Cr 40,059,788
↓ -23,892,158 ICICI Pru Banking & Fin Svcs Dir Gr
Investment Fund | -6% ₹1,287 Cr 118,490,422 ICICI Pru Short Term Dir Gr
Investment Fund | -6% ₹1,283 Cr 227,769,643
↑ 44,504,489 ICICI Pru Savings Dir Gr
Investment Fund | -6% ₹1,261 Cr 26,350,543
↓ -19,903,397 ICICI Pru Technology Dir Gr
Investment Fund | -6% ₹1,261 Cr 77,347,161
↑ 6,269,672 ICICI Pru Business Cycle Dir Gr
Investment Fund | -5% ₹990 Cr 600,987,239
↑ 91,264,755 ICICI Pru Value Discovery Dir Gr
Investment Fund | -5% ₹962 Cr 27,823,118
Advantages of Fund of Funds
Like every mutual fund, fund of funds also has numerous advantages. Some of them are:
1. Portfolio Diversification and Fund Allocation
One of the key primary benefits is portfolio diversification. Here, despite investing in one single fund, the investment is made in several mutual fund schemes, where the fund is allocated in an optimal manner with the aim to earn maximum returns at a given level of risk.
2. Gateway for Diversified Assets
Multi-management investment helps retail investors to get access to funds that are not easily available for investments. A single fund of fund can take exposure in turn to Equity Funds, Debt fund or even commodity based mutual funds. This ensures diversification for the retail investor by just getting into one Mutual fund.
3. Due Diligence Process
All the funds under this category are expected to follow a due diligence process conducted by the fund manager where they need to check the background and credentials of the underlying fund managers before making an investment to ensure the strategy is in-line with expectations.
4. Less Investment Amount
This is a good option for retail investors who wish to venture into this investment avenue with a lower ticket size.
How Does a Fund of Fund Works?
For understanding the modalities of how multi-manager investment functions, it is important to understand the concepts of fettered and unfettered management. Fettered management is a situation when the mutual fund invests its money in a portfolio containing assets and funds managed by its own company. In other words, the money is invested in the funds of the same asset management company. In contrast, unfettered management is a situation where the mutual fund invests in external funds managed by other Asset Management Companies. Unfettered funds have an advantage over fettered funds as they can exploit opportunities from numerous funds and other schemes instead of limiting themselves to the same family funds.
Why Choose Fund of Funds?
The following image gives clarity on how multi-management investment can help an individual instead of a simple mutual fund to achieve their objectives.
Though multi-management investment has a lot of benefits associated with it, one of the important factors that one needs to be aware of is the fee associated with it. Investors should be aware of any charges or expenses that a mutual fund will attract and make their investments accordingly. Therefore, in a nutshell, it can be concluded fund of funds is an ideal investment option for investors who seek to enjoy a hassle free investment in mutual funds.
How to Invest in FOF Mutual Funds Online?
Open Free Investment Account for Lifetime at Fincash.com.
Complete your Registration and KYC Process
Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!
FAQs
1. What is the most significant advantage of FOFs?
A: The most significant advantage of FOFs is that it diversifies your investment and ensures good returns. If you are planning to diversify your investment portfolio, it is good to invest in FOFs. It reduces your risk and ensures that you enjoy good returns on your investments.
2. What are the different types of FOFs?
A: There are five different types of FOFs, and these are as follows:
- Asset Allocation funds
- Gold funds
- International FOFs
- ETF FOFs
- Multi-manager FOFs
Each of the FOF has unique features. For example, in gold funds you will invest in gold ETF and in multi-managers FOFs you will invest in different types of mutual funds.
3. What are the parameters to consider while investing in FOFs?
A: FOFs are mutual funds, hence, when you invest you should consider your risk taking capacity and the amount of money you want to invest. The percentage of returns you expect in the given time will give you an idea of your capacity to take risks. Based on that, you should evaluate the money you want to invest. Your financial condition should also help you decide how much money you should invest in FOFs.
Once you have assessed these two factors, select a particular FOF and start investing.
4. Which FOF has shown the best returns?
A: Gold FOFs are considered one of the most secure investments. These are like gold ETFs, and when you invest in gold FOF, it is like investing in physical gold without the added issues like paying GST, Sales Tax, or wealth tax. This investment is secure as gold price never falls extensively compared to the market and hence, produces good returns. Thus, often gold FOF is considered one of the best and safest investments.
5. Is there any commonest FOFs?
A: The Exchange Traded Funds or the ETFs are the most popular FOFs as investing in these funds is the easiest. All you need to do is open a Demat account to trade in ETFs, and there are no limitations as to the amount of money you can invest in ETFs.
6. What is one of the most critical limitations of FOF?
A: It is taxable. As an investor, you will have to pay tax on the principal amount when you redeem your investment. If you invest in FOF for the short-term, you will have to pay Taxes on the principal and the returns. However, dividend earned is not taxable as the fund house bears the taxes.
7. Do FOFs have a long lock-in period?
A: Different FOFs have different investment periods. However, if you want to earn maximum returns, you must invest in FOFs for a reasonably long time.
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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