A fund of funds (FoF) is an investment approach that involves holding a portfolio of other investment funds, as opposed to directly investing in separate securities.
This approach can provide investors with a high level of diversification and exposure to areas of the market that may otherwise be inaccessible due to high minimum investment requirements. However, the layered fee structure of FoFs, which includes fees for both the FoF and the underlying funds, can eat into investment returns.
