Private equity funds whose principal activity consists of investing in other private equity funds. Investors in funds of funds can thereby increase their level of diversification.

Investment company that invests in other investment companies.

A mutual fund composed of other mutual funds.

Collective investment institution that shares its equity securities among various investment funds.

A fund that invests in a portfolio of hedge funds. Or it could be a fund that invests in a portfolio of private equity funds.

A fund that takes equity positions in other funds. A fund of fund that primarily invests in new funds is a Primary or Primaries fund of funds. One that focuses on investing in existing funds is referred to as a Secondary fund of funds.

a Fund that mixes and matches the most successful Hedge Funds and other pooled investment vehicles, spreading investments among many different Funds or investment vehicles

a general partnership that aggregates investor capital and provides professional selection and management of a portfolio of private equity funds

a group of individual hedge funds that has been assembled by a third party, an arrangement that provides diversification and, perhaps, a margin of safety

an entity that invests in a number of hedge funds

an equity fund that invests in other equity schemes

a pooled fund vehicle whose manager evaluates, selects and allocates capital amongst a number of private equity funds

a private investment partnership that invests in multiple hedge funds

a unit trust fund which is allowed to invest in other unit trust funds, making it easier for investors to achieve a spread of assets

a unit trust which invests in other unit trusts

A managed fund that invests in other managed funds, usually unit trusts.

(go to top) A fund whose portfolio is made up of allocations to other funds. The portfolio will typically diversify across a variety of investment managers and investment strategies.

Authorised unit trust which invests in the units of other unit trusts.

Fund which invests in other direct investment funds to spread the risk without taking direct equity stakes in companies.

Fund that does not make direct investments, but instead invests in other funds. The high level of diversification thus allows for a greater reduction in the risk exposure.

A fund that simultaneously invests in several funds, thereby reducing the performance risk inherent in any one fund. The manager of the fund selects which funds to invest in, but not the individual stocks.

Fund of funds are designed to increase diversification by investing in other funds.

A fund that invests only in the shares of other open-end funds. Fund of funds were popular during the 1960s but have subsequently fallen out of favor with most investors.

A fund that has the purpose of investing in other funds.

A mutual fund or hedge fund that invests in other funds, who in turn invest capital directly. 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.

An investment fund that invests in other investment funds.

Investment strategy that seeks to diversify risk exposure and manager style among various fund managers. Potential pitfalls include a lack of transparency and an added layer of fees. This strategy is popular with hedge fund investors looking to diversify risk among various fund groups.

Fund that invests in other mutual funds in the same fund family, instead of or in addition to investing directly in equity, fixed income or other types of investments.

A fund that invests primarily in other venture capital funds, rather than in portfolio companies.

A fund of funds is structured as a hedge fund, but rather than investing in individual securities, the manager allocates capital to several fund managers. This allows an investor to participate in more than one hedge fund at a time without having to meet the investment minimums of each fund. In addition to the fees of the individual hedge funds, the manager of the fund of funds charges a fee for his/her services. The fund of funds fee can be either a flat percentage of assets or a combination of a flat percentage and a percentage of profits. Investors in fund of funds must be accredited investors.

Funds that are able to invest only in other authorised collective investment schemes or funds. M&G offers two types of fund of funds: M&G Global Managed, Managed Growth and Managed Funds which can only invest in a range of M&G's funds, and the M&G fund of funds portfolios that can invest in any fund in the market.

An investment vehicle that invests in other funds.

An investment vehicle designed to invest in a diversified group of investment funds.

An investment vehicle whose holdings consist of shares in hedge funds and private-equity funds. Some of these multi-manager vehicles limit their holdings to specific managers or investment strategies, while others are more diversified. Investors in funds of funds are willing to pay two sets of fees, one to the fund-of-funds manager and another set of (usually higher) fees to the managers of the underlying funds

A fund that invests in a portfolio of hedge funds. The fund's portfolio may utilize a variety of investment styles, thus creating a diverse vehicle for investors. The benefits of a fund of funds include: professional management and monitoring, lower minimums, extensive due diligence prior to investments being made, and access to investment managers that may not be available otherwise.

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.

A private equity fund that, instead of being used to make direct investments in companies, is distributed among a number of other private equity fund managers, who in turn invest the capital directly. Funds of funds often give individual limited partners access to funds from which they would otherwise be excluded. Also, by spreading the capital more widely, the risk to limited partners is reduced.

A fund whose portfolio is made up of allocations to other funds. Government Debt Bonds and other debt issued by government or governmental organisations and agencies.

A fund which takes minority equity positions in other funds. If the focus is primarily investing in new funds this is a Primary fund of funds and if focusing on investing in mature, existing funds this is referred to as a Secondary fund of funds.

A fund investing primarily in other investment funds.

A mutual fund that invests in other mutual funds.

Refers to the fund created where AustralianSuper selects a general risk profile, for example growth, and the investment manager selects the underlying investments from among a range of products managed by other investment managers.

A commodity pool that invests in other commodity pools rather than directly in futures and options contracts.

A Fund or trust that invests in the shares of other investment trusts or other Funds.

Pooled Fund that invests in the units or shares of other pooled funds from within one category such as Securities Funds.

A "fund of funds" (FoF) is an investment fund that uses an investment strategy of holding a portfolio of other investment funds rather than investing directly in shares, bonds or other securities. This type of investing is often referred to as multi-manager investment.