A mutual fund that invests in the units of different mutual funds is called ‘Fund Of Fund’, or FoF in short. At the heart is an investment strategy of having a portfolio of other mutual funds that invest directly in equity, debt and other assets. Some financial strategists say that FoF can suit smaller investors who can have the avenue of investing in a range of assets through one fund.
Motilal Oswal Nasdaq 100 FoF was launched November 29, 2018. The NAV of this fund on August 29, 2024 is Rs 33.09. The size of the fund of Rs 4,844.82 crore. The expense ratio of this open ended fund is 0.58% against a category average of 1.07%. It is categorised as Very High in the risk-o-meter.
Lump sum returns
If an investor put Rs 10,000 in this fund 6 months ago, he/she would have got Rs 11,007; 1 year ago it would have generated Rs 13,000; 2 years ago it would have generated Rs 15,952; 5 years ago it would have generated Rs 28,445 and since inception (November 29, 2018), the fund would have given him/her Rs 33,094. The benchmark index of this fund is Nasdaq 100 TRI.
SIP returns
A monthly SIP of Rs 1,000 in this fund 1 year ago would have generated Rs 13,748; 2 years ago would have generated Rs 32,522; 3 years ago would have generated Rs 50,238 and 5 years ago would have generated Rs 99,970.
Sectors
The portfolio of the fund has invested 99.33% of its money into equities. The sectors that are represented in its portfolio are technology (where it invested 67.8%), consumer discretionary (15.26%) and healthcare (5.93%). No other sector has garnered more than 5% of the funds of this scheme. However, according to Value Research the details of the mutual funds in which this fund of fund has invested is not available.
For whom
In its website Motilal Oswal has said that those investors looking who want exposure to 100 largest non-financial companies listed on the Nasdaq Stock Market can invest in this fund. The index composition has higher weight to leading technology stocks.
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A fund of fund is an excellent portfolio diversifier since it offers an investor the opportunity to access multiple mutual funds with one investment. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
