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What's a fund of funds?

帮考网校2020-10-13 10:15:52
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A fund of funds is a type of investment fund that pools money from multiple investors to invest in a variety of other investment funds, rather than investing directly in individual securities or assets. The fund of funds manager selects and invests in a diversified portfolio of other funds, such as mutual funds, exchange-traded funds (ETFs), and hedge funds, in order to achieve a specific investment objective or strategy. Fund of funds provide investors with exposure to a broader range of assets and investment strategies, while also potentially reducing risk through diversification. However, fund of funds typically charge higher fees than other types of investment funds due to the additional layer of management and administration involved.
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