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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 2022
- 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
7 Best Fund of Funds in India 2022
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 2022
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2021 (%) Franklin India Dynamic PE Ratio Fund of Funds Growth ₹112.944
↑ 0.91 ₹1,053 6.4 4.2 11.2 10.6 8.5 36.3 Kotak Asset Allocator Fund - FOF Growth ₹142.158
↑ 0.43 ₹587 10.2 5.9 10.3 19.7 13.8 25 ICICI Prudential Nifty Next 50 Index Fund Growth ₹38.2093
↑ 0.38 ₹2,043 11.2 5.7 9.4 18.4 9.3 29.5 Principal Nifty 100 Equal Weight Fund Growth ₹113.249
↑ 0.97 ₹53 10.8 4.5 9.2 19.9 10.5 32.2 UTI Nifty Index Fund Growth ₹120.466
↑ 0.80 ₹7,068 11.1 4.5 9.1 18.5 13.6 25.2 IDFC Nifty Fund Growth ₹38.1196
↑ 0.25 ₹424 11.1 4.6 9 18.5 13.6 24.4 ICICI Prudential Nifty Index Fund Growth ₹176.801
↑ 1.17 ₹3,066 11 4.3 8.9 18.2 13.1 24.9 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 17 Aug 22 Assets >= 50 Crore & Sorted based on 1 year Return.
To provide long term capital appreciation with relatively lower volatility through a dynamically balanced portfolio of equity and income funds Franklin India Dynamic PE Ratio Fund of Funds is a Others - Fund of Fund fund was launched on 31 Oct 03. It is a fund with Moderately High risk and has given a Below is the key information for Franklin India Dynamic PE Ratio Fund of Funds Returns up to 1 year are on 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 The fund's objective is to invest in companies whose securities are included in Nifty Junior Index and to endeavor to achieve the returns of the above index as closely as possible, though subject to tracking error. The fund intends to track only 90-95% of the Index i.e. it will always keep cash balance between 5-10% of the Net Asset to meet the redemption and other liquidity requirements. However, as and when the liquidity in the Index improves the fund intends to track up to 100% of the Index. The fund will not seek to outperform the CNX Nifty Junior. The objective is that the performance of the NAV of the fund should closely track the performance of the CNX Nifty Junior over the same period subject to tracking error. ICICI Prudential Nifty Next 50 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 ICICI Prudential Nifty Next 50 Index Fund Returns up to 1 year are on (Erstwhile Principal Index Fund - Nifty) The Scheme plans to invest principally in securities that comprise S&P CNX Nifty (NSE) and subject to tracking errors endeavour to attain results commensurate with the Nifty. Principal Nifty 100 Equal Weight Fund is a Others - Index Fund fund was launched on 27 Jul 99. It is a fund with Moderately High risk and has given a Below is the key information for Principal Nifty 100 Equal Weight Fund Returns up to 1 year are on The principal investment objective of the scheme is to invest in stocks of companies comprising Nifty 50 Index and endeavour to achieve return equivalent to Nifty 50 by “passive” investment. The scheme will be managed
by replicating the index in the same weightage as in the Nifty 50 Index with the intention of minimising the performance differences between the scheme and the Nifty 50 Index in capital terms, subject to market liquidity, costs of trading, management expenses and other factors which may cause tracking error. The
scheme would alter the scrips/weights as and when the same are altered in the Nifty 50 Index. UTI Nifty Index Fund is a Others - Index Fund fund was launched on 6 Mar 00. It is a fund with Moderately High risk and has given a Below is the key information for UTI Nifty Index Fund Returns up to 1 year are on The investment objective of the scheme is to replicate the Nifty 50 by investing in securities of the Nifty 50 in the same proportion / weightage. However, there is no assurance or guarantee that the objectives of the scheme will be realized
and the scheme does not assure or guarantee any returns . IDFC Nifty Fund is a Others - Index Fund fund was launched on 30 Apr 10. It is a fund with Moderately High risk and has given a Below is the key information for IDFC Nifty Fund Returns up to 1 year are on (Erstwhile ICICI Prudential Nifty Index Fund) An open-ended index linked growth scheme seeking to track the returns of the S&P CNX Nifty index through investment in a basket of stocks drawn from the constituents of the Nifty. ICICI Prudential Nifty Index Fund is a Others - Index Fund fund was launched on 26 Feb 02. It is a fund with Moderately High risk and has given a Below is the key information for ICICI Prudential Nifty Index Fund Returns up to 1 year are on 1. Franklin India Dynamic PE Ratio Fund of Funds
CAGR/Annualized return of 13.8% since its launch. Ranked 24 in Fund of Fund category. Return for 2021 was 36.3% , 2020 was -7.7% and 2019 was 5.8% . Franklin India Dynamic PE Ratio Fund of Funds
Growth Launch Date 31 Oct 03 NAV (17 Aug 22) ₹112.944 ↑ 0.91 (0.81 %) Net Assets (Cr) ₹1,053 on 30 Jun 22 Category Others - Fund of Fund AMC Franklin Templeton Asst Mgmt(IND)Pvt Ltd Rating ☆☆☆ Risk Moderately High Expense Ratio 1.25 Sharpe Ratio 0.6 Information Ratio -0.32 Alpha Ratio 6.31 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-1 Years (1%),1 Years and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Jul 17 ₹10,000 31 Jul 18 ₹10,578 31 Jul 19 ₹11,086 31 Jul 20 ₹9,192 31 Jul 21 ₹13,164 31 Jul 22 ₹14,561 Returns for Franklin India Dynamic PE Ratio Fund of Funds
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 17 Aug 22 Duration Returns 1 Month 6% 3 Month 6.4% 6 Month 4.2% 1 Year 11.2% 3 Year 10.6% 5 Year 8.5% 10 Year 15 Year Since launch 13.8% Historical performance (Yearly) on absolute basis
Year Returns 2021 36.3% 2020 -7.7% 2019 5.8% 2018 4.9% 2017 15.5% 2016 7.7% 2015 5.2% 2014 24.7% 2013 3.9% 2012 20% Fund Manager information for Franklin India Dynamic PE Ratio Fund of Funds
Name Since Tenure Rajasa Kakulavarapu 7 Feb 22 0.48 Yr. Data below for Franklin India Dynamic PE Ratio Fund of Funds as on 30 Jun 22
Asset Allocation
Asset Class Value Cash 45.11% Equity 53.2% Debt 1.18% Other 0.51% Top Securities Holdings / Portfolio
Name Holding Value Quantity Franklin India Flexi Cap Dir Gr
Investment Fund | -55% ₹577 Cr 6,166,617
↑ 768,195 Franklin India S/T Income Dir Gr
Investment Fund | -1% ₹15 Cr 57,784 Franklin India S/T Inc Sgtd Ptf2RetDirGr
Investment Fund | -1% ₹5 Cr 1,126,813 Franklin India S/T Inc Sgtd Ptf3DirRetGr
Investment Fund | -0% ₹0 Cr 1,370,528
↑ 1,370,528 Call, Cash & Other Assets
Net Current Assets | -43% ₹456 Cr 2. Kotak Asset Allocator Fund - FOF
CAGR/Annualized return of 15.9% since its launch. Ranked 17 in Fund of Fund category. Return for 2021 was 25% , 2020 was 25% and 2019 was 10.3% . Kotak Asset Allocator Fund - FOF
Growth Launch Date 9 Aug 04 NAV (17 Aug 22) ₹142.158 ↑ 0.43 (0.30 %) Net Assets (Cr) ₹587 on 30 Jun 22 Category Others - Fund of Fund AMC Kotak Mahindra Asset Management Co Ltd Rating ☆☆☆☆ Risk Moderately High Expense Ratio 0.76 Sharpe Ratio -0.09 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 Jul 17 ₹10,000 31 Jul 18 ₹10,369 31 Jul 19 ₹11,072 31 Jul 20 ₹12,437 31 Jul 21 ₹17,177 31 Jul 22 ₹18,407 Returns for Kotak Asset Allocator Fund - FOF
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 17 Aug 22 Duration Returns 1 Month 8.1% 3 Month 10.2% 6 Month 5.9% 1 Year 10.3% 3 Year 19.7% 5 Year 13.8% 10 Year 15 Year Since launch 15.9% Historical performance (Yearly) on absolute basis
Year Returns 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% 2012 29.6% Fund Manager information for Kotak Asset Allocator Fund - FOF
Name Since Tenure Abhishek Bisen 15 Nov 21 0.71 Yr. Devender Singhal 9 May 19 3.23 Yr. Arjun Khanna 9 May 19 3.23 Yr. Data below for Kotak Asset Allocator Fund - FOF as on 30 Jun 22
Asset Allocation
Asset Class Value Cash 6.7% Equity 69.46% Debt 14.79% Other 9.05% Top Securities Holdings / Portfolio
Name Holding Value Quantity Kotak Bluechip Dir Gr
Investment Fund | -24% ₹142 Cr 3,790,664 Kotak Emerging Equity Dir Gr
Investment Fund | -22% ₹127 Cr 17,270,796 Kotak Bond Dir Gr
Investment Fund | -15% ₹90 Cr 13,408,100 Kotak Nifty 50 ETF
- | -11% ₹64 Cr 3,800,000
↑ 300,000 Kotak Gold ETF
- | -9% ₹54 Cr 12,400,000 Kotak Infra & Econ Reform Dir Gr
Investment Fund | -7% ₹38 Cr 10,863,373 iShares NASDAQ 100 ETF USD Acc
- | -5% ₹30 Cr 5,865 Kotak Small Cap Dir Gr
Investment Fund | -3% ₹17 Cr 1,037,262 Kotak Equity Opportunities Dir Gr
Investment Fund | -1% ₹4 Cr 214,094 Triparty Repo
CBLO/Reverse Repo | -4% ₹21 Cr 3. ICICI Prudential Nifty Next 50 Index Fund
CAGR/Annualized return of 11.7% since its launch. Ranked 5 in Index Fund category. Return for 2021 was 29.5% , 2020 was 14.3% and 2019 was 0.6% . ICICI Prudential Nifty Next 50 Index Fund
Growth Launch Date 25 Jun 10 NAV (17 Aug 22) ₹38.2093 ↑ 0.38 (1.01 %) Net Assets (Cr) ₹2,043 on 30 Jun 22 Category Others - Index Fund AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆☆ Risk Moderately High Expense Ratio 0.83 Sharpe Ratio -0.55 Information Ratio -7.07 Alpha Ratio -0.91 Min Investment 5,000 Min SIP Investment 100 Exit Load 0-7 Days (0.25%),7 Days and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Jul 17 ₹10,000 31 Jul 18 ₹10,625 31 Jul 19 ₹9,355 31 Jul 20 ₹9,607 31 Jul 21 ₹14,004 31 Jul 22 ₹14,603 Returns for ICICI Prudential Nifty Next 50 Index Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 17 Aug 22 Duration Returns 1 Month 11.3% 3 Month 11.2% 6 Month 5.7% 1 Year 9.4% 3 Year 18.4% 5 Year 9.3% 10 Year 15 Year Since launch 11.7% Historical performance (Yearly) on absolute basis
Year Returns 2021 29.5% 2020 14.3% 2019 0.6% 2018 -8.8% 2017 45.7% 2016 7.6% 2015 6.2% 2014 43.6% 2013 5.4% 2012 44.9% Fund Manager information for ICICI Prudential Nifty Next 50 Index Fund
Name Since Tenure Kayzad Eghlim 25 Jun 10 12.11 Yr. Nishit Patel 18 Jan 21 1.53 Yr. Data below for ICICI Prudential Nifty Next 50 Index Fund as on 30 Jun 22
Asset Allocation
Asset Class Value Cash 0.07% Equity 99.93% Top Securities Holdings / Portfolio
Name Holding Value Quantity Adani Enterprises Ltd (Energy)
Equity, Since 31 Mar 21 | 5125996% ₹120 Cr 546,933
↑ 19,154 Adani Transmission Ltd (Utilities)
Equity, Since 31 Mar 20 | ADANITRANS4% ₹84 Cr 341,441
↑ 14,654 Adani Green Energy Ltd (Utilities)
Equity, Since 30 Sep 20 | ADANIGREEN4% ₹82 Cr 426,976
↑ 18,025 SRF Ltd (Basic Materials)
Equity, Since 31 Mar 22 | SRF3% ₹65 Cr 290,681
↑ 11,877 Pidilite Industries Ltd (Basic Materials)
Equity, Since 30 Apr 16 | PIDILITIND3% ₹64 Cr 305,176
↑ 12,473 Avenue Supermarts Ltd (Consumer Defensive)
Equity, Since 30 Sep 17 | 5403763% ₹62 Cr 182,415
↑ 5,338 Info Edge (India) Ltd (Communication Services)
Equity, Since 30 Jun 20 | NAUKRI3% ₹58 Cr 154,636
↑ 6,316 Dabur India Ltd (Consumer Defensive)
Equity, Since 31 Oct 11 | 5000963% ₹58 Cr 1,167,559
↑ 47,713 Godrej Consumer Products Ltd (Consumer Defensive)
Equity, Since 30 Sep 12 | 5324243% ₹57 Cr 757,204
↑ 30,939 ICICI Lombard General Insurance Co Ltd (Financial Services)
Equity, Since 30 Sep 18 | ICICIGI3% ₹57 Cr 510,862
↑ 20,873 4. Principal Nifty 100 Equal Weight Fund
CAGR/Annualized return of since its launch. Ranked 72 in Index Fund category. Return for 2021 was 32.2% , 2020 was 14.1% and 2019 was 2.8% . Principal Nifty 100 Equal Weight Fund
Growth Launch Date 27 Jul 99 NAV (17 Aug 22) ₹113.249 ↑ 0.97 (0.86 %) Net Assets (Cr) ₹53 on 30 Jun 22 Category Others - Index Fund AMC Principal Pnb Asset Mgmt. Co. Priv. Ltd. Rating ☆☆ Risk Moderately High Expense Ratio 0.96 Sharpe Ratio -0.47 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-90 Days (1%),90 Days and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Jul 17 ₹10,000 31 Jul 18 ₹10,746 31 Jul 19 ₹9,506 31 Jul 20 ₹9,455 31 Jul 21 ₹14,574 31 Jul 22 ₹15,409 Returns for Principal Nifty 100 Equal Weight Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 17 Aug 22 Duration Returns 1 Month 11.1% 3 Month 10.8% 6 Month 4.5% 1 Year 9.2% 3 Year 19.9% 5 Year 10.5% 10 Year 15 Year Since launch Historical performance (Yearly) on absolute basis
Year Returns 2021 32.2% 2020 14.1% 2019 2.8% 2018 -3.4% 2017 28.9% 2016 3.4% 2015 -3.9% 2014 31.2% 2013 7.7% 2012 27.2% Fund Manager information for Principal Nifty 100 Equal Weight Fund
Name Since Tenure Rohit Seksaria 1 Jan 22 0.58 Yr. Ashish Aggarwal 1 Jan 22 0.58 Yr. Data below for Principal Nifty 100 Equal Weight Fund as on 30 Jun 22
Asset Allocation
Asset Class Value Cash 1.22% Equity 98.77% Debt 0% Top Securities Holdings / Portfolio
Name Holding Value Quantity Mahindra & Mahindra Ltd (Consumer Cyclical)
Equity, Since 31 Jan 03 | M&M2% ₹1 Cr 7,487
↑ 155 One97 Communications Ltd (Technology)
Equity, Since 30 Apr 22 | 5433961% ₹1 Cr 10,725
↑ 222 Ambuja Cements Ltd (Basic Materials)
Equity, Since 31 May 18 | 5004251% ₹1 Cr 19,573
↑ 405 Eicher Motors Ltd (Consumer Cyclical)
Equity, Since 30 Apr 16 | EICHERMOT1% ₹1 Cr 2,405
↑ 49 Adani Enterprises Ltd (Energy)
Equity, Since 31 Mar 21 | 5125991% ₹1 Cr 3,011
↑ 62 Maruti Suzuki India Ltd (Consumer Cyclical)
Equity, Since 31 Jan 12 | MARUTI1% ₹1 Cr 764
↑ 15 Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 31 Jan 03 | HINDUNILVR1% ₹1 Cr 2,898
↑ 60 Hero MotoCorp Ltd (Consumer Cyclical)
Equity, Since 31 Dec 11 | HEROMOTOCO1% ₹1 Cr 2,376
↑ 49 Britannia Industries Ltd (Consumer Defensive)
Equity, Since 31 May 18 | 5008251% ₹1 Cr 1,851
↑ 38 Godrej Consumer Products Ltd (Consumer Defensive)
Equity, Since 31 May 18 | 5324241% ₹1 Cr 8,264
↑ 171 5. UTI Nifty Index Fund
CAGR/Annualized return of 11.7% since its launch. Ranked 68 in Index Fund category. Return for 2021 was 25.2% , 2020 was 15.5% and 2019 was 13.2% . UTI Nifty Index Fund
Growth Launch Date 6 Mar 00 NAV (17 Aug 22) ₹120.466 ↑ 0.80 (0.66 %) Net Assets (Cr) ₹7,068 on 30 Jun 22 Category Others - Index Fund AMC UTI Asset Management Company Ltd Rating ☆☆ Risk Moderately High Expense Ratio 0.15 Sharpe Ratio -0.12 Information Ratio -3.19 Alpha Ratio -0.35 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Growth of 10,000 investment over the years.
Date Value 31 Jul 17 ₹10,000 31 Jul 18 ₹11,387 31 Jul 19 ₹11,264 31 Jul 20 ₹11,280 31 Jul 21 ₹16,220 31 Jul 22 ₹17,816 Returns for UTI Nifty Index Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 17 Aug 22 Duration Returns 1 Month 12% 3 Month 11.1% 6 Month 4.5% 1 Year 9.1% 3 Year 18.5% 5 Year 13.6% 10 Year 15 Year Since launch 11.7% Historical performance (Yearly) on absolute basis
Year Returns 2021 25.2% 2020 15.5% 2019 13.2% 2018 4.3% 2017 29.7% 2016 4% 2015 -3.3% 2014 31.8% 2013 6.9% 2012 28.3% Fund Manager information for UTI Nifty Index Fund
Name Since Tenure Sharwan Kumar Goyal 31 Jul 18 4 Yr. Ayush Jain 2 May 22 0.25 Yr. Data below for UTI Nifty Index Fund as on 30 Jun 22
Asset Allocation
Asset Class Value Cash 0.29% Equity 99.71% Top Securities Holdings / Portfolio
Name Holding Value Quantity Reliance Industries Ltd (Energy)
Equity, Since 31 Jan 03 | RELIANCE13% ₹912 Cr 3,513,697
↑ 151,578 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jan 10 | HDFCBANK9% ₹602 Cr 4,467,475
↑ 198,884 Infosys Ltd (Technology)
Equity, Since 31 Jan 03 | INFY8% ₹545 Cr 3,727,836
↑ 161,289 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Jan 03 | ICICIBANK7% ₹501 Cr 7,083,255
↑ 311,956 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 Mar 12 | HDFC6% ₹401 Cr 1,844,964
↑ 81,868 Tata Consultancy Services Ltd (Technology)
Equity, Since 28 Feb 05 | TCS5% ₹345 Cr 1,054,794
↑ 45,468 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Dec 10 | KOTAKBANK4% ₹249 Cr 1,496,041
↑ 65,045 ITC Ltd (Consumer Defensive)
Equity, Since 31 Jan 03 | ITC3% ₹244 Cr 8,910,518
↑ 384,094 Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 31 Jan 03 | HINDUNILVR3% ₹203 Cr 909,275
↑ 39,195 Larsen & Toubro Ltd (Industrials)
Equity, Since 31 Dec 04 | LT3% ₹192 Cr 1,230,662
↑ 53,199 6. IDFC Nifty Fund
CAGR/Annualized return of 11.5% since its launch. Ranked 70 in Index Fund category. Return for 2021 was 24.4% , 2020 was 16.2% and 2019 was 12.9% . IDFC Nifty Fund
Growth Launch Date 30 Apr 10 NAV (17 Aug 22) ₹38.1196 ↑ 0.25 (0.66 %) Net Assets (Cr) ₹424 on 30 Jun 22 Category Others - Index Fund AMC IDFC Asset Management Company Limited Rating ☆☆ Risk Moderately High Expense Ratio 0.47 Sharpe Ratio -0.13 Information Ratio -0.93 Alpha Ratio -0.5 Min Investment 100 Min SIP Investment 1,000 Exit Load 0-7 Days (1%),7 Days and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Jul 17 ₹10,000 31 Jul 18 ₹11,372 31 Jul 19 ₹11,244 31 Jul 20 ₹11,320 31 Jul 21 ₹16,193 31 Jul 22 ₹17,779 Returns for IDFC Nifty Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 17 Aug 22 Duration Returns 1 Month 12% 3 Month 11.1% 6 Month 4.6% 1 Year 9% 3 Year 18.5% 5 Year 13.6% 10 Year 15 Year Since launch 11.5% Historical performance (Yearly) on absolute basis
Year Returns 2021 24.4% 2020 16.2% 2019 12.9% 2018 4.4% 2017 29.5% 2016 3.9% 2015 -3.5% 2014 32.5% 2013 7.5% 2012 29.9% Fund Manager information for IDFC Nifty Fund
Name Since Tenure Nemish Sheth 1 Mar 22 0.42 Yr. Data below for IDFC Nifty Fund as on 30 Jun 22
Asset Allocation
Asset Class Value Cash 0.42% Equity 99.58% Top Securities Holdings / Portfolio
Name Holding Value Quantity Reliance Industries Ltd (Energy)
Equity, Since 30 Apr 10 | RELIANCE12% ₹53 Cr 203,101
↑ 4,410 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 10 | HDFCBANK9% ₹36 Cr 269,635
↑ 17,343 Infosys Ltd (Technology)
Equity, Since 30 Apr 10 | INFY8% ₹33 Cr 224,763
↑ 13,988 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 10 | ICICIBANK7% ₹31 Cr 432,555
↑ 32,426 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 30 Apr 10 | HDFC6% ₹24 Cr 111,132
↑ 6,943 Tata Consultancy Services Ltd (Technology)
Equity, Since 30 Apr 10 | TCS5% ₹21 Cr 63,536
↑ 3,888 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Mar 12 | KOTAKBANK4% ₹15 Cr 92,088
↑ 7,530 ITC Ltd (Consumer Defensive)
Equity, Since 29 Feb 12 | ITC3% ₹14 Cr 525,949
↑ 22,072 Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 31 Jan 11 | HINDUNILVR3% ₹13 Cr 56,377
↑ 4,959 Larsen & Toubro Ltd (Industrials)
Equity, Since 29 Feb 12 | LT3% ₹11 Cr 73,097
↑ 3,537 7. ICICI Prudential Nifty Index Fund
CAGR/Annualized return of 15.1% since its launch. Ranked 71 in Index Fund category. Return for 2021 was 24.9% , 2020 was 15.2% and 2019 was 12.8% . ICICI Prudential Nifty Index Fund
Growth Launch Date 26 Feb 02 NAV (17 Aug 22) ₹176.801 ↑ 1.17 (0.67 %) Net Assets (Cr) ₹3,066 on 30 Jun 22 Category Others - Index Fund AMC ICICI Prudential Asset Management Company Limited Rating ☆☆ Risk Moderately High Expense Ratio 0.45 Sharpe Ratio -0.13 Information Ratio -5.49 Alpha Ratio -0.48 Min Investment 5,000 Min SIP Investment 100 Exit Load NIL Growth of 10,000 investment over the years.
Date Value 31 Jul 17 ₹10,000 31 Jul 18 ₹11,275 31 Jul 19 ₹11,087 31 Jul 20 ₹11,086 31 Jul 21 ₹15,872 31 Jul 22 ₹17,408 Returns for ICICI Prudential Nifty Index Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 17 Aug 22 Duration Returns 1 Month 12% 3 Month 11% 6 Month 4.3% 1 Year 8.9% 3 Year 18.2% 5 Year 13.1% 10 Year 15 Year Since launch 15.1% Historical performance (Yearly) on absolute basis
Year Returns 2021 24.9% 2020 15.2% 2019 12.8% 2018 3.4% 2017 28.7% 2016 3.6% 2015 -3.6% 2014 32.5% 2013 7.9% 2012 26.5% Fund Manager information for ICICI Prudential Nifty Index Fund
Name Since Tenure Kayzad Eghlim 1 Aug 09 13.01 Yr. Nishit Patel 18 Jan 21 1.53 Yr. Data below for ICICI Prudential Nifty Index Fund as on 30 Jun 22
Asset Allocation
Asset Class Value Cash 0.39% Equity 99.61% Top Securities Holdings / Portfolio
Name Holding Value Quantity Reliance Industries Ltd (Energy)
Equity, Since 31 Mar 05 | RELIANCE13% ₹395 Cr 1,522,182
↑ 87,455 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Mar 05 | HDFCBANK9% ₹261 Cr 1,934,506
↑ 112,951 Infosys Ltd (Technology)
Equity, Since 31 Mar 05 | INFY8% ₹236 Cr 1,614,949
↑ 92,985 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Mar 05 | ICICIBANK7% ₹217 Cr 3,068,564
↑ 179,095 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 Mar 12 | HDFC6% ₹173 Cr 799,171
↑ 46,652 Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Mar 05 | TCS5% ₹149 Cr 456,626
↑ 26,151 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 29 Feb 12 | KOTAKBANK4% ₹108 Cr 647,644
↑ 36,797 ITC Ltd (Consumer Defensive)
Equity, Since 29 Feb 12 | ITC3% ₹106 Cr 3,857,420
↑ 216,601 Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 31 Mar 05 | HINDUNILVR3% ₹88 Cr 393,630
↑ 22,085 Larsen & Toubro Ltd (Industrials)
Equity, Since 29 Feb 12 | LT3% ₹83 Cr 532,760
↑ 29,994
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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