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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 2021
- 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 2021
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
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2020 (%) ICICI Prudential Advisor Series - Passive Strategy Fund Growth ₹103.781
↑ 1.06 ₹88 14.4 27.7 63 19 14.7 10.7 ICICI Prudential Nifty Next 50 Index Fund Growth ₹39.1301
↑ 0.33 ₹1,535 14.6 30.6 62 18.7 13.9 14.3 IDBI Nifty Junior Index Fund Growth ₹33.169
↑ 0.28 ₹56 14.6 30.6 62 18.6 13.3 13.7 UTI Nifty Index Fund Growth ₹121.911
↑ 1.18 ₹4,854 15.8 27.1 54.6 21.5 17.4 15.5 ICICI Prudential Nifty Index Fund Growth ₹179.117
↑ 1.73 ₹2,060 15.8 27 54 21.1 16.8 15.2 SBI Nifty Index Fund Growth ₹157.9
↑ 1.53 ₹1,430 15.8 26.9 53.9 20.8 16.7 14.6 Aditya Birla Sun Life Index Fund Growth ₹181.16
↑ 1.76 ₹282 15.7 26.9 53.7 20.8 16.5 15.2 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 14 Oct 21 Assets >= 50 Crore & Sorted based on 1 year Return.
(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 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 The investment objective of the scheme is to invest in the stocks and equity related instruments comprising the CNX Nifty Junior 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 CNX Nifty Junior Index. The scheme will adopt a passive investment strategy and will seek to achieve the investment objective by minimizing the tracking error between the CNX Nifty Junior Index (Total Returns Index) and the scheme. IDBI Nifty Junior Index Fund is a Others - Index Fund fund was launched on 20 Sep 10. It is a fund with Moderately High risk and has given a Below is the key information for IDBI Nifty Junior Index 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 (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 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 Below is the key information for SBI Nifty Index Fund Returns up to 1 year are on 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 Below is the key information for Aditya Birla Sun Life Index Fund Returns up to 1 year are on 1. ICICI Prudential Advisor Series - Passive Strategy Fund
CAGR/Annualized return of 14% since its launch. Return for 2020 was 10.7% , 2019 was 6.7% and 2018 was 4% . ICICI Prudential Advisor Series - Passive Strategy Fund
Growth Launch Date 18 Dec 03 NAV (14 Oct 21) ₹103.781 ↑ 1.06 (1.03 %) Net Assets (Cr) ₹88 on 31 Aug 21 Category Others - Fund of Fund AMC ICICI Prudential Asset Management Company Limited Rating Risk Moderately High Expense Ratio 0.4 Sharpe Ratio 2.78 Information Ratio -0.47 Alpha Ratio -0.11 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 30 Sep 16 ₹10,000 30 Sep 17 ₹11,388 30 Sep 18 ₹12,276 30 Sep 19 ₹12,553 30 Sep 20 ₹11,911 30 Sep 21 ₹19,062 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 14 Oct 21 Duration Returns 1 Month 5.5% 3 Month 14.4% 6 Month 27.7% 1 Year 63% 3 Year 19% 5 Year 14.7% 10 Year 15 Year Since launch 14% Historical performance (Yearly) on absolute basis
Year Returns 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
Name Since Tenure Sankaran Naren 5 Sep 18 2.99 Yr. Dharmesh Kakkad 28 May 18 3.26 Yr. Data below for ICICI Prudential Advisor Series - Passive Strategy Fund as on 31 Aug 21
Asset Allocation
Asset Class Value Cash 1.71% Equity 98.29% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Pru S&P BSE 500 ETF
- | ICICI50043% ₹38 Cr 1,577,808
↓ -37,346 ICICI Pru Nifty ETF
- | ICICINIFTY42% ₹37 Cr 2,020,722 ICICI Pru Private Banks ETF
- | ICICIBANKP6% ₹5 Cr 262,387 BHARAT 22 ETF
- | 5407875% ₹4 Cr 1,038,842 ICICI Pru Healthcare ETF
- | 5432923% ₹3 Cr 309,136
↑ 95,078 Treps
CBLO/Reverse Repo | -2% ₹2 Cr Net Current Assets
Net Current Assets | -0% ₹0 Cr 2. ICICI Prudential Nifty Next 50 Index Fund
CAGR/Annualized return of 12.8% since its launch. Ranked 5 in Index Fund category. Return for 2020 was 14.3% , 2019 was 0.6% and 2018 was -8.8% . ICICI Prudential Nifty Next 50 Index Fund
Growth Launch Date 25 Jun 10 NAV (14 Oct 21) ₹39.1301 ↑ 0.33 (0.86 %) Net Assets (Cr) ₹1,535 on 31 Aug 21 Category Others - Index Fund AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆☆ Risk Moderately High Expense Ratio 0.83 Sharpe Ratio 2.92 Information Ratio -5.45 Alpha Ratio -1.27 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 30 Sep 16 ₹10,000 30 Sep 17 ₹12,166 30 Sep 18 ₹12,061 30 Sep 19 ₹12,171 30 Sep 20 ₹11,897 30 Sep 21 ₹18,561 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 14 Oct 21 Duration Returns 1 Month 3.5% 3 Month 14.6% 6 Month 30.6% 1 Year 62% 3 Year 18.7% 5 Year 13.9% 10 Year 15 Year Since launch 12.8% Historical performance (Yearly) on absolute basis
Year Returns 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% 2011 -30.8% Fund Manager information for ICICI Prudential Nifty Next 50 Index Fund
Name Since Tenure Kayzad Eghlim 25 Jun 10 11.19 Yr. Nishit Patel 18 Jan 21 0.62 Yr. Data below for ICICI Prudential Nifty Next 50 Index Fund as on 31 Aug 21
Asset Allocation
Asset Class Value Cash 0.2% Equity 99.8% Top Securities Holdings / Portfolio
Name Holding Value Quantity Apollo Hospitals Enterprise Ltd (Healthcare)
Equity, Since 31 Mar 21 | APOLLOHOSP4% ₹64 Cr 129,669
↑ 3,952 Info Edge (India) Ltd (Communication Services)
Equity, Since 30 Jun 20 | NAUKRI4% ₹62 Cr 99,549
↑ 3,034 Avenue Supermarts Ltd (Consumer Defensive)
Equity, Since 30 Sep 17 | 5403764% ₹58 Cr 146,729
↑ 3,857 Adani Enterprises Ltd (Energy)
Equity, Since 31 Mar 21 | 5125994% ₹56 Cr 354,229
↑ 10,999 Godrej Consumer Products Ltd (Consumer Defensive)
Equity, Since 30 Sep 12 | 5324243% ₹54 Cr 487,401
↑ 14,860 Vedanta Ltd (Basic Materials)
Equity, Since 31 Mar 21 | 5002953% ₹49 Cr 1,628,253
↑ 49,638 Dabur India Ltd (Consumer Defensive)
Equity, Since 31 Oct 11 | 5000963% ₹47 Cr 751,601
↑ 22,914 Adani Green Energy Ltd (Utilities)
Equity, Since 30 Sep 20 | 5414503% ₹46 Cr 431,286
↑ 12,687 ICICI Lombard General Insurance Co Ltd (Financial Services)
Equity, Since 30 Sep 18 | 5407163% ₹45 Cr 281,156
↑ 8,571 Pidilite Industries Ltd (Basic Materials)
Equity, Since 30 Apr 16 | PIDILITIND3% ₹45 Cr 196,401
↑ 5,988 3. IDBI Nifty Junior Index Fund
CAGR/Annualized return of 11.4% since its launch. Ranked 8 in Index Fund category. Return for 2020 was 13.7% , 2019 was 0.5% and 2018 was -9.3% . IDBI Nifty Junior Index Fund
Growth Launch Date 20 Sep 10 NAV (14 Oct 21) ₹33.169 ↑ 0.28 (0.85 %) Net Assets (Cr) ₹56 on 31 Aug 21 Category Others - Index Fund AMC IDBI Asset Management Limited Rating ☆☆☆☆☆ Risk Moderately High Expense Ratio 1.04 Sharpe Ratio 2.83 Information Ratio -2.5 Alpha Ratio -2.41 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Growth of 10,000 investment over the years.
Date Value 30 Sep 16 ₹10,000 30 Sep 17 ₹12,015 30 Sep 18 ₹11,764 30 Sep 19 ₹11,889 30 Sep 20 ₹11,579 30 Sep 21 ₹18,041 Returns for IDBI Nifty Junior Index Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 14 Oct 21 Duration Returns 1 Month 3.6% 3 Month 14.6% 6 Month 30.6% 1 Year 62% 3 Year 18.6% 5 Year 13.3% 10 Year 15 Year Since launch 11.4% Historical performance (Yearly) on absolute basis
Year Returns 2020 13.7% 2019 0.5% 2018 -9.3% 2017 43.6% 2016 6.9% 2015 5.8% 2014 42.8% 2013 4.8% 2012 47.6% 2011 -32% Fund Manager information for IDBI Nifty Junior Index Fund
Name Since Tenure Firdaus Ragina 9 Oct 18 2.9 Yr. Data below for IDBI Nifty Junior Index Fund as on 31 Aug 21
Asset Allocation
Asset Class Value Cash 0.77% Equity 99.23% Top Securities Holdings / Portfolio
Name Holding Value Quantity Apollo Hospitals Enterprise Ltd (Healthcare)
Equity, Since 31 Mar 21 | APOLLOHOSP4% ₹2 Cr 4,717
↓ -28 Info Edge (India) Ltd (Communication Services)
Equity, Since 30 Jun 20 | NAUKRI4% ₹2 Cr 3,621
↓ -22 Avenue Supermarts Ltd (Consumer Defensive)
Equity, Since 31 Oct 17 | 5403764% ₹2 Cr 5,338
↓ -31 Adani Enterprises Ltd (Energy)
Equity, Since 31 Mar 21 | 5125994% ₹2 Cr 12,886
↓ -75 Godrej Consumer Products Ltd (Consumer Defensive)
Equity, Since 31 Oct 12 | 5324243% ₹2 Cr 17,732
↓ -101 Vedanta Ltd (Basic Materials)
Equity, Since 31 Mar 21 | 5002953% ₹2 Cr 59,223
↓ -356 Dabur India Ltd (Consumer Defensive)
Equity, Since 31 Oct 11 | 5000963% ₹2 Cr 27,343
↓ -157 Adani Green Energy Ltd (Utilities)
Equity, Since 30 Sep 20 | 5414503% ₹2 Cr 15,692
↓ -86 ICICI Lombard General Insurance Co Ltd (Financial Services)
Equity, Since 30 Sep 18 | 5407163% ₹2 Cr 10,228
↓ -58 Pidilite Industries Ltd (Basic Materials)
Equity, Since 30 Apr 16 | PIDILITIND3% ₹2 Cr 7,145
↓ -41 4. UTI Nifty Index Fund
CAGR/Annualized return of 12.3% since its launch. Ranked 68 in Index Fund category. Return for 2020 was 15.5% , 2019 was 13.2% and 2018 was 4.3% . UTI Nifty Index Fund
Growth Launch Date 6 Mar 00 NAV (14 Oct 21) ₹121.911 ↑ 1.18 (0.98 %) Net Assets (Cr) ₹4,854 on 31 Aug 21 Category Others - Index Fund AMC UTI Asset Management Company Ltd Rating ☆☆ Risk Moderately High Expense Ratio 0.15 Sharpe Ratio 2.57 Information Ratio -2.97 Alpha Ratio -0.26 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Growth of 10,000 investment over the years.
Date Value 30 Sep 16 ₹10,000 30 Sep 17 ₹11,464 30 Sep 18 ₹12,924 30 Sep 19 ₹13,712 30 Sep 20 ₹13,505 30 Sep 21 ₹21,351 Returns for UTI Nifty Index Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 14 Oct 21 Duration Returns 1 Month 5.5% 3 Month 15.8% 6 Month 27.1% 1 Year 54.6% 3 Year 21.5% 5 Year 17.4% 10 Year 15 Year Since launch 12.3% Historical performance (Yearly) on absolute basis
Year Returns 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
Name Since Tenure Sharwan Kumar Goyal 1 May 19 2.34 Yr. Data below for UTI Nifty Index Fund as on 31 Aug 21
Asset Allocation
Asset Class Value Cash 0.03% Equity 99.97% Top Securities Holdings / Portfolio
Name Holding Value Quantity Reliance Industries Ltd (Energy)
Equity, Since 31 Jan 03 | RELIANCE10% ₹477 Cr 2,112,318
↑ 55,644 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jan 10 | HDFCBANK9% ₹451 Cr 2,851,176
↑ 75,108 Infosys Ltd (Technology)
Equity, Since 31 Jan 03 | INFY9% ₹413 Cr 2,422,125
↑ 63,806 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 Mar 12 | HDFC7% ₹330 Cr 1,177,898
↑ 31,029 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Jan 03 | ICICIBANK7% ₹325 Cr 4,524,131
↑ 119,178 Tata Consultancy Services Ltd (Technology)
Equity, Since 28 Feb 05 | TCS5% ₹256 Cr 676,685
↑ 17,826 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Dec 10 | KOTAKBANK3% ₹168 Cr 958,426
↑ 25,248 Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 31 Jan 03 | 5006963% ₹159 Cr 583,329
↑ 15,367 Axis Bank Ltd (Financial Services)
Equity, Since 31 Mar 09 | 5322153% ₹132 Cr 1,682,136
↑ 44,312 Larsen & Toubro Ltd (Industrials)
Equity, Since 31 Dec 04 | LT3% ₹132 Cr 789,206
↑ 20,789 5. ICICI Prudential Nifty Index Fund
CAGR/Annualized return of 15.8% since its launch. Ranked 71 in Index Fund category. Return for 2020 was 15.2% , 2019 was 12.8% and 2018 was 3.4% . ICICI Prudential Nifty Index Fund
Growth Launch Date 26 Feb 02 NAV (14 Oct 21) ₹179.117 ↑ 1.73 (0.98 %) Net Assets (Cr) ₹2,060 on 31 Aug 21 Category Others - Index Fund AMC ICICI Prudential Asset Management Company Limited Rating ☆☆ Risk Moderately High Expense Ratio 0.45 Sharpe Ratio 2.55 Information Ratio -6.41 Alpha Ratio -0.63 Min Investment 5,000 Min SIP Investment 100 Exit Load NIL Growth of 10,000 investment over the years.
Date Value 30 Sep 16 ₹10,000 30 Sep 17 ₹11,394 30 Sep 18 ₹12,740 30 Sep 19 ₹13,452 30 Sep 20 ₹13,221 30 Sep 21 ₹20,822 Returns for ICICI Prudential Nifty Index Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 14 Oct 21 Duration Returns 1 Month 5.5% 3 Month 15.8% 6 Month 27% 1 Year 54% 3 Year 21.1% 5 Year 16.8% 10 Year 15 Year Since launch 15.8% Historical performance (Yearly) on absolute basis
Year Returns 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
Name Since Tenure Kayzad Eghlim 1 Aug 09 12.09 Yr. Nishit Patel 18 Jan 21 0.62 Yr. Data below for ICICI Prudential Nifty Index Fund as on 31 Aug 21
Asset Allocation
Asset Class Value Cash 0.03% Equity 99.97% Top Securities Holdings / Portfolio
Name Holding Value Quantity Reliance Industries Ltd (Energy)
Equity, Since 31 Mar 05 | RELIANCE10% ₹202 Cr 896,391
↑ 14,132 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Mar 05 | HDFCBANK9% ₹191 Cr 1,209,936
↑ 19,075 Infosys Ltd (Technology)
Equity, Since 31 Mar 05 | INFY9% ₹175 Cr 1,027,862
↑ 16,205 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 Mar 12 | HDFC7% ₹140 Cr 499,857
↑ 7,881 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Mar 05 | ICICIBANK7% ₹138 Cr 1,919,877
↑ 30,265 Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Mar 05 | TCS5% ₹109 Cr 287,160
↑ 4,527 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 29 Feb 12 | KOTAKBANK3% ₹71 Cr 406,721
↑ 6,412 Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 31 Mar 05 | 5006963% ₹67 Cr 247,543
↑ 3,901 Axis Bank Ltd (Financial Services)
Equity, Since 31 Mar 09 | 5322153% ₹56 Cr 713,837
↑ 11,254 Larsen & Toubro Ltd (Industrials)
Equity, Since 29 Feb 12 | LT3% ₹56 Cr 334,910
↑ 5,279 6. SBI Nifty Index Fund
CAGR/Annualized return of 15.2% since its launch. Ranked 75 in Index Fund category. Return for 2020 was 14.6% , 2019 was 12.5% and 2018 was 3.8% . SBI Nifty Index Fund
Growth Launch Date 17 Jan 02 NAV (14 Oct 21) ₹157.9 ↑ 1.53 (0.98 %) Net Assets (Cr) ₹1,430 on 31 Aug 21 Category Others - Index Fund AMC SBI Funds Management Private Limited Rating ☆ Risk Moderately High Expense Ratio 0.52 Sharpe Ratio 2.53 Information Ratio -4.97 Alpha Ratio -0.82 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.
Date Value 30 Sep 16 ₹10,000 30 Sep 17 ₹11,402 30 Sep 18 ₹12,808 30 Sep 19 ₹13,512 30 Sep 20 ₹13,193 30 Sep 21 ₹20,762 Returns for SBI Nifty Index Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 14 Oct 21 Duration Returns 1 Month 5.5% 3 Month 15.8% 6 Month 26.9% 1 Year 53.9% 3 Year 20.8% 5 Year 16.7% 10 Year 15 Year Since launch 15.2% Historical performance (Yearly) on absolute basis
Year Returns 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
Name Since Tenure Raviprakash Sharma 1 Feb 11 10.59 Yr. Data below for SBI Nifty Index Fund as on 31 Aug 21
Asset Allocation
Asset Class Value Equity 100.01% Top Securities Holdings / Portfolio
Name Holding Value Quantity Reliance Industries Ltd (Energy)
Equity, Since 31 Jan 03 | RELIANCE10% ₹141 Cr 622,651
↑ 20,166 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Mar 03 | HDFCBANK9% ₹133 Cr 840,445
↑ 27,194 Infosys Ltd (Technology)
Equity, Since 31 Jan 03 | INFY9% ₹122 Cr 713,973
↑ 23,101 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 May 03 | HDFC7% ₹97 Cr 347,211
↑ 11,234 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Jan 03 | ICICIBANK7% ₹96 Cr 1,333,584
↑ 43,145 Tata Consultancy Services Ltd (Technology)
Equity, Since 28 Feb 05 | TCS5% ₹76 Cr 199,468
↑ 6,463 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Mar 12 | KOTAKBANK3% ₹50 Cr 282,516
↑ 9,138 Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 31 Jan 03 | 5006963% ₹47 Cr 171,948
↑ 5,563 Axis Bank Ltd (Financial Services)
Equity, Since 28 Feb 10 | 5322153% ₹39 Cr 495,846
↑ 16,058 Larsen & Toubro Ltd (Industrials)
Equity, Since 31 Dec 04 | LT3% ₹39 Cr 232,635
↑ 7,525 7. Aditya Birla Sun Life Index Fund
CAGR/Annualized return of 16.4% since its launch. Ranked 77 in Index Fund category. Return for 2020 was 15.2% , 2019 was 12.4% and 2018 was 3.2% . Aditya Birla Sun Life Index Fund
Growth Launch Date 18 Sep 02 NAV (14 Oct 21) ₹181.16 ↑ 1.76 (0.98 %) Net Assets (Cr) ₹282 on 31 Aug 21 Category Others - Index Fund AMC Birla Sun Life Asset Management Co Ltd Rating ☆ Risk Moderately High Expense Ratio 0.58 Sharpe Ratio 2.53 Information Ratio -2.45 Alpha Ratio -0.95 Min Investment 1,000 Min SIP Investment 1,000 Exit Load NIL Growth of 10,000 investment over the years.
Date Value 30 Sep 16 ₹10,000 30 Sep 17 ₹11,354 30 Sep 18 ₹12,650 30 Sep 19 ₹13,330 30 Sep 20 ₹13,094 30 Sep 21 ₹20,570 Returns for Aditya Birla Sun Life Index Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 14 Oct 21 Duration Returns 1 Month 5.5% 3 Month 15.7% 6 Month 26.9% 1 Year 53.7% 3 Year 20.8% 5 Year 16.5% 10 Year 15 Year Since launch 16.4% Historical performance (Yearly) on absolute basis
Year Returns 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
Name Since Tenure Lovelish Solanki 5 Aug 21 0.07 Yr. Kedarnath Mirajkar 7 May 21 0.32 Yr. Data below for Aditya Birla Sun Life Index Fund as on 31 Aug 21
Asset Allocation
Asset Class Value Cash 0.06% Equity 99.94% Top Securities Holdings / Portfolio
Name Holding Value Quantity Reliance Industries Ltd (Energy)
Equity, Since 30 Sep 07 | RELIANCE10% ₹28 Cr 122,828
↑ 2,102 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Sep 07 | HDFCBANK9% ₹26 Cr 165,794
↑ 2,841 Infosys Ltd (Technology)
Equity, Since 30 Sep 07 | INFY9% ₹24 Cr 140,842
↑ 2,411 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 May 12 | HDFC7% ₹19 Cr 68,493
↑ 1,172 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 09 | ICICIBANK7% ₹19 Cr 263,072
↑ 4,506 Tata Consultancy Services Ltd (Technology)
Equity, Since 30 Sep 07 | TCS5% ₹15 Cr 39,349
↑ 675 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 30 Apr 10 | KOTAKBANK3% ₹10 Cr 55,732
↑ 955 Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 30 Sep 07 | 5006963% ₹9 Cr 33,921
↑ 583 Axis Bank Ltd (Financial Services)
Equity, Since 31 Mar 09 | 5322153% ₹8 Cr 97,816
↑ 1,676 Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Sep 07 | LT3% ₹8 Cr 45,891
↑ 786
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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