As name indicated,Fund Of Fund schemes are mutual funds which invests in other funds of same or different mutual funds.
Most of the FOF schemes are run as advisory series by mutual funds.They invest in different types of mutual funds offering more diversification to investors.
Should you invest in Fund Of Fund Schemes?
Answer is depends.Recently some mutual fund houses launched Gold fund of fund scheme.Some of the analysts think that it is not a great idea to invest through it,,rather invest through GOLD ETFs..But my honest opinion is that one should invest through GOLD ETFs only if you are a active share trader.If not better to invest through GOLD FOF schemes.
Also,if we are interested in overseas ETFS like World Gold ETF,China market or emerging markets like Brazil only Fund of fund schemes will provide you opprtunity to invest.
Here are some of the best performing Fund of Fund scheme with 1 year return.
1.AIG WORLD GOLD FUND : 36.75%
2.DSP BLACK ROCK WORLD GOLD FUND : 31.65
3.MIRAE ASSET CHINA ADVANTAGE FUND : 23.02%
4.DSP BLACKROCK WORLD MINNING FUND : 22.89.
5.ING OPTIIX GOLBAL COMMODITIES FUND : 21.89%
6.FIDELITY GLOBAL REAL ESTATE FUND : 20.40%
7.DSP BLACK ROCK WORLD ENERGY FUND : 19.40%
8.JP MORGAN JF CHINA ADVANTAGE FUND:19.37%
9. SUNDARAM GLOBAL ADVANTAGE FUND: 15.40%
10.QUANTUM EQUITY FUND OF FUND : 13%.
