A Fund of Fund means a mutual fund scheme that invests in other mutual fund schemes. The fund manager invests in other mutual funds instead of directly investing in equities or bonds. The portfolio is catered for investors with different risk profiles and financial goals. The Fund of Funds offers https://urzadzajzpasja.pl/
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The most sought-after Fund of Funds in India are:
Multi Asset allocation fund of funds are mutual funds that invest in and even other asset classes such as gold, equity, debt, and other commodities.
Gold Fund of Funds are funds that have underlying investments in Gold ETFs
International funds are investments in mutual funds that comprise bonds and shares of global companies.
Investing in a fund of funds is a smart choice if one looks into a few aspects.
Advantages
An investor’s investment is diversified across several funds from various sectors..
This investment strategy of the fund of funds in India can helps one to get exposure in some of the top-performing mutual funds even with a limited investment budget.
In case of Fund of Funds, taxation levied is payable by an investor, only when the fund is redeemed. However, both short-term and long-term capital gains are subject to tax deductions in India, depending upon the annual income of the investor and the time of investment.
There is no taxation on fund of funds scheme if Fund Manager rebalances the scheme portfolio.