Fund of Funds (FOF)

A Fund of Funds (FOF), also commonly known as a multi-manager investment, is an innovative investment vehicle that blends together a range of mutual funds, hedge funds, private equities, and investment trusts. The primary purpose of a FOF is to strategically achieve extensive diversification and optimize asset allocation by investing in diverse fund categories within a consolidated portfolio. By combining multiple funds, FOFs offer investors the opportunity to access a broader range of investment options and potentially enhance their overall risk-return profile.