Fund of Funds

 

A Fund of Funds (FoF) is a mutual fund that invests in other mutual funds in order to increase diversification and reduce risk in comparison to traditional mutual funds. The term may also refer to an investment strategy of holding a portfolio of other investment funds rather than investing directly in shares, bonds or other securities. It is also known as a multi-manager investment. The different types of fund of funds include mutual fund FoF, hedge fund FoF, private equity FoF or investment trust FoF.

Related Concepts: Buyout Deals Capital Calls Distressed Debt Diversification Investment Manager Investment Trust LP Investors Management Fees Multi-Manager Investment Partnership Investments Portfolio Accounting Secondary Funds Available Positions Related to Fund of Funds: Alternative Investments jobs Investment Banking jobs

Relevant Functional Areas: Alternative Investments Capital Raising Financial Sponsors Fund Accounting & Administration Hedge Funds Private Equity Venture Capital   Related Job Titles: Buy-side Research Fund Investment Strategist Fundraiser Investor Relations Portfolio Manager   Synonyms: FoF