Fund of Funds (FOF) refers to an investment fund scheme which invests in other investment funds.

In the context of Mutual Funds, rather than directly investing in equity or bonds, the fund manager in FOF holds a portfolio of other mutual fund schemes. It is sometimes also referred to as “Umbrella Fund”.

A fund manager of a FOF scheme may choose to invest in mutual fund schemes of the same AMC or different, as long as it suits the needs of the investment objective of the investors. FOF schemes can be either domestic or overseas funds.
A popular example of fund of fund scheme are Gold Funds, International Funds, etc.