You're here:  Home --> Dictionary --> F --> Fund of Funds

Mutual Fund
Net Asset Value
Sector Fund
Hedge Fund

Fund of Funds
Term category: Mutual Funds
In 10 words or less:  A mutual fund or hedge fund hat invests in other funds.

Definition: This is a mutual fund or hedge fund that invests in other funds rather than in individual securities.

StockJargon Advice: Fund of funds are thought to be attractive because they offer greater diversification and can select the best mutual funds to invest in.

However, it's important to realize that you may be paying twice as much in expenses (the individual mutual funds and the fund of funds both likely charge fees).

Related Articles

Hedge Fund Strategies
Hedge funds use a variety of different strategies to attract investors and earn high returns.

A Look Into Mutual Funds
So you want to start investing but are afraid to risk your money in one stock. Well, mutual funds might be the safer alternative for you..

Fund Classifications
Learn about the different types of fund classifications and objectives.

Related Books

Morningstar Guide to Mutual Funds by Christine Benz
Common Sense on Mutual Funds by John Bogle
Mutual Funds for Dummies by Eric Tyson
Beating the Street by Peter Lynch

# -A - B - C - D - E - F - G - H - I - J - K - L - M - N - O - P - Q - R - S - T - U - V - W - X - Y - Z