A mutual fund that invests in other mutual funds.

A fund created to invest in private equity or venture capital funds. This entity is often referred to as a Limited Partner to the venture capital funds.

A fund set up to distribute investments among a selection of private equity fund managers, who in turn invest the capital directly. Fund of funds are specialist private equity investors and have existing relationships with firms. They may be able to provide investors with a route to investing in particular funds that would otherwise be closed to them. Investing in fund of funds can also help spread the risk of investing in private equity because they invest the capital in a variety of funds.