Fund of Funds

A mutual fund that invests in other mutual funds.


For example, an investor would select a general risk profile and the fund-of-funds manager would pick underlying investments from a range of products managed by external managers. The big downside is you are paying management fees twice.

This method is sometimes known as "multi-management."




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Related Terms

Diversification

Expense Ratio

Expense Ratio

Fund Manager

Master Fund

Mutual Funds

Portfolio

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