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7 Best Fund of Funds in India 2021 - Fincash.com

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7 Best Fund of Funds in India 2021

Updated on April 7, 2021 , 17209 views

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 2021

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2020 (%)
PGIM India Global Agribusiness Offshore Fund Growth ₹34.33
↑ 0.08
₹852-2.211.274.631.221.472.4
ICICI Prudential Advisor Series - Passive Strategy Fund Growth ₹83.4077
↓ -0.15
₹805.730.464.210.412.410.7
UTI Nifty Index Fund Growth ₹98.0737
↓ -0.26
₹3,2923.6256413.615.515.5
IDFC Nifty Fund Growth ₹31.1235
↓ -0.08
₹2803.424.563.213.715.516.2
SBI Nifty Index Fund Growth ₹127.267
↓ -0.34
₹9243.424.663.212.914.814.6
ICICI Prudential Nifty Index Fund Growth ₹144.247
↓ -0.38
₹1,3753.424.762.913.114.815.2
Aditya Birla Sun Life Index Fund Growth ₹146.011
↓ -0.39
₹2233.424.562.612.914.515.2
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 8 Apr 21
*List of Funds based on Assets >= 50 Crore & Sorted based on 1 year Return.

1. PGIM India Global Agribusiness Offshore Fund

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 CAGR/Annualized return of 12% since its launch.  Ranked 33 in Fund of Fund category.  Return for 2020 was 72.4% , 2019 was 30.9% and 2018 was 0.3% .

Below is the key information for PGIM India Global Agribusiness Offshore Fund

PGIM India Global Agribusiness Offshore Fund
Growth
Launch Date 14 May 10
NAV (08 Apr 21) ₹34.33 ↑ 0.08   (0.23 %)
Net Assets (Cr) ₹852 on 28 Feb 21
Category Others - Fund of Fund
AMC Pramerica Asset Managers Private Limited
Rating
Risk High
Expense Ratio 0.96
Sharpe Ratio 2.45
Information Ratio 1.44
Alpha Ratio 29.07
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.

DateValue
31 Mar 16₹10,000
31 Mar 17₹10,119
31 Mar 18₹11,214
31 Mar 19₹13,418
31 Mar 20₹14,497
31 Mar 21₹23,783

PGIM India Global Agribusiness Offshore Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹518,033.
Net Profit of ₹218,033
Invest Now

Returns for PGIM India Global Agribusiness Offshore Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 8 Apr 21

DurationReturns
1 Month 6.5%
3 Month -2.2%
6 Month 11.2%
1 Year 74.6%
3 Year 31.2%
5 Year 21.4%
10 Year
15 Year
Since launch 12%
Historical performance (Yearly) on absolute basis
YearReturns
2020 72.4%
2019 30.9%
2018 0.3%
2017 11.9%
2016 0.8%
2015 -14.7%
2014 0.9%
2013 13.4%
2012 19.9%
2011 1.4%
Fund Manager information for PGIM India Global Agribusiness Offshore Fund
NameSinceTenure
Alok Agarwal27 Jul 173.68 Yr.

Data below for PGIM India Global Agribusiness Offshore Fund as on 28 Feb 21

Asset Allocation
Asset ClassValue
Cash6.49%
Equity93.51%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
PGIM Jennison Global Eq Opps USD I Acc
Investment Fund | -
95%₹812 Cr401,875
↑ 38,684
Net Receivables / (Payables)
Net Current Assets | -
4%₹35 Cr
Treps / Reverse Repo
CBLO/Reverse Repo | -
1%₹5 Cr

2. ICICI Prudential Advisor Series - Passive Strategy Fund

(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 CAGR/Annualized return of 13% since its launch.  Return for 2020 was 10.7% , 2019 was 6.7% and 2018 was 4% .

Below is the key information for ICICI Prudential Advisor Series - Passive Strategy Fund

ICICI Prudential Advisor Series - Passive Strategy Fund
Growth
Launch Date 18 Dec 03
NAV (09 Apr 21) ₹83.4077 ↓ -0.15   (-0.18 %)
Net Assets (Cr) ₹80 on 28 Feb 21
Category Others - Fund of Fund
AMC ICICI Prudential Asset Management Company Limited
Rating Not Rated
Risk Moderately High
Expense Ratio 0.46
Sharpe Ratio 0.81
Information Ratio -0.25
Alpha Ratio -1.65
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.

DateValue
31 Mar 16₹10,000
31 Mar 17₹12,081
31 Mar 18₹13,082
31 Mar 19₹14,282
31 Mar 20₹10,579
31 Mar 21₹17,690

ICICI Prudential Advisor Series - Passive Strategy Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹415,684.
Net Profit of ₹115,684
Invest Now

Returns for ICICI Prudential Advisor Series - Passive Strategy Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 8 Apr 21

DurationReturns
1 Month -0.5%
3 Month 5.7%
6 Month 30.4%
1 Year 64.2%
3 Year 10.4%
5 Year 12.4%
10 Year
15 Year
Since launch 13%
Historical performance (Yearly) on absolute basis
YearReturns
2020 10.7%
2019 6.7%
2018 4%
2017 19.2%
2016 11.2%
2015 1.2%
2014 29.6%
2013 0.3%
2012 21.2%
2011 -5.4%
Fund Manager information for ICICI Prudential Advisor Series - Passive Strategy Fund
NameSinceTenure
Sankaran Naren5 Sep 182.49 Yr.
Dharmesh Kakkad28 May 182.76 Yr.

Data below for ICICI Prudential Advisor Series - Passive Strategy Fund as on 28 Feb 21

Asset Allocation
Asset ClassValue
Equity101.49%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
ICICI Prudential S&P BSE 500 ETF
- | ICICI500
39%₹32 Cr1,564,968
ICICI Prudential Nifty ETF
- | ICICINIFTY
20%₹16 Cr1,046,597
↑ 187,862
ICICI Pru Nifty Low Vol 30 ETF
- | ICICILOVOL
15%₹12 Cr1,031,900
ICICI Prudential Midcap 150 ETF
- | 542921
15%₹12 Cr1,309,986
↓ -286,819
BHARAT 22 ETF
- | 540787
12%₹10 Cr2,658,200
↓ -516,000
Net Current Assets
Net Current Assets | -
3%-₹2 Cr
Treps
CBLO/Reverse Repo | -
2%₹1 Cr

3. UTI Nifty Index Fund

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 CAGR/Annualized return of 11.4% since its launch.  Ranked 68 in Index Fund category.  Return for 2020 was 15.5% , 2019 was 13.2% and 2018 was 4.3% .

Below is the key information for UTI Nifty Index Fund

UTI Nifty Index Fund
Growth
Launch Date 6 Mar 00
NAV (09 Apr 21) ₹98.0737 ↓ -0.26   (-0.26 %)
Net Assets (Cr) ₹3,292 on 28 Feb 21
Category Others - Index Fund
AMC UTI Asset Management Company Ltd
Rating
Risk Moderately High
Expense Ratio 0.17
Sharpe Ratio 0.84
Information Ratio -2.62
Alpha Ratio -0.63
Min Investment 5,000
Min SIP Investment 500
Exit Load NIL

Growth of 10,000 investment over the years.

DateValue
31 Mar 16₹10,000
31 Mar 17₹11,951
31 Mar 18₹13,325
31 Mar 19₹15,456
31 Mar 20₹11,530
31 Mar 21₹19,845

UTI Nifty Index Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹447,579.
Net Profit of ₹147,579
Invest Now

Returns for UTI Nifty Index Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 8 Apr 21

DurationReturns
1 Month -1.7%
3 Month 3.6%
6 Month 25%
1 Year 64%
3 Year 13.6%
5 Year 15.5%
10 Year
15 Year
Since launch 11.4%
Historical performance (Yearly) on absolute basis
YearReturns
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%
2011 -24.8%
Fund Manager information for UTI Nifty Index Fund
NameSinceTenure
Sharwan Kumar Goyal1 May 191.92 Yr.

Data below for UTI Nifty Index Fund as on 28 Feb 21

Asset Allocation
Asset ClassValue
Equity101.76%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Reliance Industries Ltd Shs Dematerialised (Energy)
Equity, Since 31 Jan 03 | RELIANCE
11%₹361 Cr1,729,226
↑ 21,972
HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jan 10 | HDFCBANK
11%₹357 Cr2,327,151
↑ 29,573
Infosys Ltd (Technology)
Equity, Since 31 Jan 03 | INFY
8%₹248 Cr1,982,037
↑ 25,190
Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 Mar 12 | HDFC
7%₹244 Cr961,187
↑ 12,219
ICICI Bank Ltd (Financial Services)
Equity, Since 31 Jan 03 | ICICIBANK
7%₹221 Cr3,692,242
↑ 46,904
Tata Consultancy Services Ltd (Technology)
Equity, Since 28 Feb 05 | TCS
5%₹163 Cr561,948
↑ 7,140
Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Dec 10 | KOTAKBANK
4%₹140 Cr783,576
↑ 9,960
Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 31 Jan 03 | 500696
3%₹102 Cr477,530
↑ 6,074
Axis Bank Ltd (Financial Services)
Equity, Since 31 Mar 09 | 532215
3%₹96 Cr1,326,182
↑ 16,835
ITC Ltd (Consumer Defensive)
Equity, Since 31 Jan 03 | ITC
3%₹95 Cr4,672,744
↑ 59,359

4. IDFC Nifty Fund

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 CAGR/Annualized return of 10.9% since its launch.  Ranked 70 in Index Fund category.  Return for 2020 was 16.2% , 2019 was 12.9% and 2018 was 4.4% .

Below is the key information for IDFC Nifty Fund

IDFC Nifty Fund
Growth
Launch Date 30 Apr 10
NAV (09 Apr 21) ₹31.1235 ↓ -0.08   (-0.26 %)
Net Assets (Cr) ₹280 on 28 Feb 21
Category Others - Index Fund
AMC IDFC Asset Management Company Limited
Rating
Risk Moderately High
Expense Ratio 0.33
Sharpe Ratio 0.87
Information Ratio -0.69
Alpha Ratio 0.15
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.

DateValue
31 Mar 16₹10,000
31 Mar 17₹11,935
31 Mar 18₹13,294
31 Mar 19₹15,411
31 Mar 20₹11,601
31 Mar 21₹19,832

IDFC Nifty Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹447,579.
Net Profit of ₹147,579
Invest Now

Returns for IDFC Nifty Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 8 Apr 21

DurationReturns
1 Month -1.8%
3 Month 3.4%
6 Month 24.5%
1 Year 63.2%
3 Year 13.7%
5 Year 15.5%
10 Year
15 Year
Since launch 10.9%
Historical performance (Yearly) on absolute basis
YearReturns
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%
2011 -23.8%
Fund Manager information for IDFC Nifty Fund
NameSinceTenure
Arpit Kapoor1 Mar 174.09 Yr.
Sumit Agrawal1 Mar 174.09 Yr.

Data below for IDFC Nifty Fund as on 28 Feb 21

Asset Allocation
Asset ClassValue
Cash0.43%
Equity99.56%
Debt0.01%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Reliance Industries Ltd Shs Dematerialised (Energy)
Equity, Since 30 Apr 10 | RELIANCE
11%₹30 Cr142,797
↑ 803
HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 10 | HDFCBANK
11%₹30 Cr192,258
↑ 1,383
Infosys Ltd (Technology)
Equity, Since 30 Apr 10 | INFY
7%₹21 Cr163,719
↑ 1,142
Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 30 Apr 10 | HDFC
7%₹20 Cr79,354
↑ 458
ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 10 | ICICIBANK
7%₹18 Cr304,725
↑ 1,706
Tata Consultancy Services Ltd (Technology)
Equity, Since 30 Apr 10 | TCS
5%₹13 Cr46,393
↑ 283
Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Mar 12 | KOTAKBANK
4%₹12 Cr64,691
↑ 388
Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 31 Jan 11 | 500696
3%₹8 Cr39,410
↑ 220
Axis Bank Ltd (Financial Services)
Equity, Since 30 Apr 10 | 532215
3%₹8 Cr109,329
↑ 488
ITC Ltd (Consumer Defensive)
Equity, Since 29 Feb 12 | ITC
3%₹8 Cr385,776
↑ 2,212

5. SBI Nifty Index Fund

The scheme will adopt a passive investment strategy. The scheme will invest in stocks comprising the Nifty 50 Index in the same proportion as in the index with the objective of achieving returns equivalent to the Total Returns Index of Nifty 50 Index by minimizing the performance difference between the benchmark index and the scheme. The Total Returns Index is an index that reflects the returns on the index from index gain/loss plus dividend payments by the constituent stocks.

SBI Nifty Index Fund is a Others - Index Fund fund was launched on 17 Jan 02. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 14.4% since its launch.  Ranked 75 in Index Fund category.  Return for 2020 was 14.6% , 2019 was 12.5% and 2018 was 3.8% .

Below is the key information for SBI Nifty Index Fund

SBI Nifty Index Fund
Growth
Launch Date 17 Jan 02
NAV (09 Apr 21) ₹127.267 ↓ -0.34   (-0.26 %)
Net Assets (Cr) ₹924 on 28 Feb 21
Category Others - Index Fund
AMC SBI Funds Management Private Limited
Rating
Risk Moderately High
Expense Ratio 0.68
Sharpe Ratio 0.82
Information Ratio -4.92
Alpha Ratio -1.48
Min Investment 5,000
Min SIP Investment 500
Exit Load 0-15 Days (0.2%),15 Days and above(NIL)

Growth of 10,000 investment over the years.

DateValue
31 Mar 16₹10,000
31 Mar 17₹11,900
31 Mar 18₹13,184
31 Mar 19₹15,228
31 Mar 20₹11,262
31 Mar 21₹19,274

SBI Nifty Index Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹436,710.
Net Profit of ₹136,710
Invest Now

Returns for SBI Nifty Index Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 8 Apr 21

DurationReturns
1 Month -1.8%
3 Month 3.4%
6 Month 24.6%
1 Year 63.2%
3 Year 12.9%
5 Year 14.8%
10 Year
15 Year
Since launch 14.4%
Historical performance (Yearly) on absolute basis
YearReturns
2020 14.6%
2019 12.5%
2018 3.8%
2017 29.1%
2016 3.4%
2015 -4.2%
2014 30.5%
2013 6.2%
2012 28.4%
2011 -24.6%
Fund Manager information for SBI Nifty Index Fund
NameSinceTenure
Raviprakash Sharma1 Feb 1110.17 Yr.

Data below for SBI Nifty Index Fund as on 28 Feb 21

Asset Allocation
Asset ClassValue
Cash2.41%
Equity97.59%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Reliance Industries Ltd Shs Dematerialised (Energy)
Equity, Since 31 Jan 03 | RELIANCE
11%₹97 Cr465,703
↑ 4,786
HDFC Bank Ltd (Financial Services)
Equity, Since 31 Mar 03 | HDFCBANK
10%₹96 Cr626,736
↑ 6,443
Infosys Ltd (Technology)
Equity, Since 31 Jan 03 | INFY
7%₹67 Cr533,790
↑ 5,488
Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 May 03 | HDFC
7%₹66 Cr258,862
↑ 2,661
ICICI Bank Ltd (Financial Services)
Equity, Since 31 Jan 03 | ICICIBANK
6%₹59 Cr994,376
↑ 10,224
Tata Consultancy Services Ltd (Technology)
Equity, Since 28 Feb 05 | TCS
5%₹44 Cr151,341
↑ 1,557
Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Mar 12 | KOTAKBANK
4%₹38 Cr211,028
↑ 2,170
Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 31 Jan 03 | 500696
3%₹27 Cr128,606
↑ 1,322
Axis Bank Ltd (Financial Services)
Equity, Since 28 Feb 10 | 532215
3%₹26 Cr357,161
↑ 3,673
ITC Ltd (Consumer Defensive)
Equity, Since 29 Feb 12 | ITC
3%₹26 Cr1,258,439
↑ 12,939

6. ICICI Prudential Nifty Index Fund

(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 CAGR/Annualized return of 15% since its launch.  Ranked 71 in Index Fund category.  Return for 2020 was 15.2% , 2019 was 12.8% and 2018 was 3.4% .

Below is the key information for ICICI Prudential Nifty Index Fund

ICICI Prudential Nifty Index Fund
Growth
Launch Date 26 Feb 02
NAV (09 Apr 21) ₹144.247 ↓ -0.38   (-0.26 %)
Net Assets (Cr) ₹1,375 on 28 Feb 21
Category Others - Index Fund
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk Moderately High
Expense Ratio 0.46
Sharpe Ratio 0.84
Information Ratio -6.14
Alpha Ratio -0.86
Min Investment 5,000
Min SIP Investment 100
Exit Load NIL

Growth of 10,000 investment over the years.

DateValue
31 Mar 16₹10,000
31 Mar 17₹11,882
31 Mar 18₹13,119
31 Mar 19₹15,108
31 Mar 20₹11,272
31 Mar 21₹19,276

ICICI Prudential Nifty Index Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹436,710.
Net Profit of ₹136,710
Invest Now

Returns for ICICI Prudential Nifty Index Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 8 Apr 21

DurationReturns
1 Month -1.8%
3 Month 3.4%
6 Month 24.7%
1 Year 62.9%
3 Year 13.1%
5 Year 14.8%
10 Year
15 Year
Since launch 15%
Historical performance (Yearly) on absolute basis
YearReturns
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%
2011 -23.6%
Fund Manager information for ICICI Prudential Nifty Index Fund
NameSinceTenure
Kayzad Eghlim1 Aug 0911.67 Yr.
Nishit Patel18 Jan 210.2 Yr.

Data below for ICICI Prudential Nifty Index Fund as on 28 Feb 21

Asset Allocation
Asset ClassValue
Cash0.54%
Equity99.46%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Reliance Industries Ltd Shs Dematerialised (Energy)
Equity, Since 31 Mar 05 | RELIANCE
11%₹147 Cr706,303
↑ 15,000
HDFC Bank Ltd (Financial Services)
Equity, Since 31 Mar 05 | HDFCBANK
11%₹146 Cr949,818
↑ 20,186
Infosys Ltd (Technology)
Equity, Since 31 Mar 05 | INFY
7%₹101 Cr809,003
↑ 17,193
Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 Mar 12 | HDFC
7%₹100 Cr392,325
↑ 8,342
ICICI Bank Ltd (Financial Services)
Equity, Since 31 Mar 05 | ICICIBANK
7%₹90 Cr1,506,641
↑ 32,029
Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Mar 05 | TCS
5%₹66 Cr229,529
↑ 4,876
Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 29 Feb 12 | KOTAKBANK
4%₹57 Cr319,972
↑ 6,795
Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 31 Mar 05 | 500696
3%₹42 Cr195,048
↑ 4,141
Axis Bank Ltd (Financial Services)
Equity, Since 31 Mar 09 | 532215
3%₹39 Cr541,508
↑ 11,501
ITC Ltd (Consumer Defensive)
Equity, Since 29 Feb 12 | ITC
3%₹39 Cr1,908,564
↑ 40,537

7. Aditya Birla Sun Life Index Fund

An Open-ended index-linked growth scheme with the objective to generate returns commensurate with the performance of Nifty subject to tracking errors.

Aditya Birla Sun Life Index Fund is a Others - Index Fund fund was launched on 18 Sep 02. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 15.5% since its launch.  Ranked 77 in Index Fund category.  Return for 2020 was 15.2% , 2019 was 12.4% and 2018 was 3.2% .

Below is the key information for Aditya Birla Sun Life Index Fund

Aditya Birla Sun Life Index Fund
Growth
Launch Date 18 Sep 02
NAV (09 Apr 21) ₹146.011 ↓ -0.39   (-0.26 %)
Net Assets (Cr) ₹223 on 28 Feb 21
Category Others - Index Fund
AMC Birla Sun Life Asset Management Co Ltd
Rating
Risk Moderately High
Expense Ratio 0.64
Sharpe Ratio 0.85
Information Ratio -2.64
Alpha Ratio -0.45
Min Investment 1,000
Min SIP Investment 1,000
Exit Load NIL

Growth of 10,000 investment over the years.

DateValue
31 Mar 16₹10,000
31 Mar 17₹11,795
31 Mar 18₹13,002
31 Mar 19₹14,943
31 Mar 20₹11,168
31 Mar 21₹19,014

Aditya Birla Sun Life Index Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹436,710.
Net Profit of ₹136,710
Invest Now

Returns for Aditya Birla Sun Life Index Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 8 Apr 21

DurationReturns
1 Month -1.8%
3 Month 3.4%
6 Month 24.5%
1 Year 62.6%
3 Year 12.9%
5 Year 14.5%
10 Year
15 Year
Since launch 15.5%
Historical performance (Yearly) on absolute basis
YearReturns
2020 15.2%
2019 12.4%
2018 3.2%
2017 28.5%
2016 3.1%
2015 -3.8%
2014 30.7%
2013 7.2%
2012 27%
2011 -25.4%
Fund Manager information for Aditya Birla Sun Life Index Fund
NameSinceTenure
Ajay Garg1 Oct 0713.51 Yr.

Data below for Aditya Birla Sun Life Index Fund as on 28 Feb 21

Asset Allocation
Asset ClassValue
Cash0.54%
Equity99.46%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Reliance Industries Ltd Shs Dematerialised (Energy)
Equity, Since 30 Sep 07 | RELIANCE
11%₹24 Cr114,369
↓ -2,403
HDFC Bank Ltd (Financial Services)
Equity, Since 30 Sep 07 | HDFCBANK
11%₹24 Cr153,915
↓ -3,233
Infosys Ltd (Technology)
Equity, Since 30 Sep 07 | INFY
7%₹16 Cr131,092
↓ -2,751
Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 May 12 | HDFC
7%₹16 Cr63,571
↓ -1,334
ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 09 | ICICIBANK
7%₹15 Cr244,207
↓ -5,124
Tata Consultancy Services Ltd (Technology)
Equity, Since 30 Sep 07 | TCS
5%₹11 Cr37,165
↓ -780
Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 30 Apr 10 | KOTAKBANK
4%₹9 Cr51,824
↓ -1,089
Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 30 Sep 07 | 500696
3%₹7 Cr31,584
↓ -663
Axis Bank Ltd (Financial Services)
Equity, Since 31 Mar 09 | 532215
3%₹6 Cr87,713
↓ -1,841
ITC Ltd (Consumer Defensive)
Equity, Since 30 Sep 07 | ITC
3%₹6 Cr309,056
↓ -6,485

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.

Why-choose-funds-of-funds

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?

  1. Open Free Investment Account for Lifetime at Fincash.com.

  2. Complete your Registration and KYC Process

  3. Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!

    Get Started

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.

Disclaimer:
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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