Financial Glossary what is fund-of-funds


Fund Of Funds

A unit trust or mutual fund that invests in other unit trusts. These funds are designed to achieve greater diversification than traditional mutual funds but the expense fees on fund of funds are typically higher than those on regular funds because they include part of the expense fees charged by the underlying funds. Often a fund of funds will invest in trusts run by the same group, but some of them will invest in funds run by other groups too.
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