Fund of Funds & Overseas Funds

A Fund of Funds is a type of mutual fund that invests in other mutual funds instead of investing directly in stocks, bonds, or other securities. It provides investors with access to a diversified portfolio of funds that invest in various asset classes and sectors. This can help reduce risk by spreading investments across different types of funds.

While Overseas Funds are mutual funds that invest in international markets or foreign companies. These funds allow Indian investors to diversify their portfolio by investing in foreign markets, which can help reduce overall portfolio risk. Overseas funds can be invested in equity or debt markets, and they provide exposure to global economic trends and foreign currencies.

Fund of Funds

• A ‘Fund Of Funds’ (FOF) is a type of mutual fund which invests its corpus in a basket of other mutual funds.

• It invests in the units of another Mutual Fund scheme.

• Minimum 95% of corpus should be invested in underlying funds.

Overseas Funds

• Overseas fund is a type of fund that invests in companies that are based internationally/ outside the investor's country of residence.

• Overseas Funds are also known as international funds. Example: Equity mutual funds investing in overseas companies like Apple, Google, Microsoft etc.